TSX:SGR.UN - Post by User
Post by
EnglishDWon Feb 28, 2014 1:46am
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Post# 22262284
Possible future share price from Eric Sprott -
Possible future share price from Eric Sprott - In the following interview he is clearly talking about SGR. https://www.stockhouse.com/companies/bullboard/t.sgr/san-gold-corporation?replyto=0 I have copied the portion relating to SGR & possible future value :- In fact I think I bought a stock at $.12 cents that had been as high as $5.00 when the price of gold was $1920. It’s a producer, and I have a simple formula; if the price of gold goes to $2000, the average gold producer probably has a cost of production all-in of $1000. So you take his production, and in the case of this $.12 cent company, he had about 85,000 ounces of production. Again, make $1000 an ounce. You would be making $85 million. I think the market cap at $.12 cents was something like $30 million. Well, if you can make pretax $85 million, ($60 million after tax) and you trade at 10 times earnings, you become a $600 million market cap company that was trading for $30 million. You've go to think Sprott is in for the long haul with SGR from what he said. Hope that was useful. Please remember, I'm a total novice here.