MinelifeI don't think you will get a 30 times forward expected cash flow on this unless they prove up a bunch of oz. with their 50,000 meter drilling program in 2010. It seems they have 20 milion oz proved up--2.8 million oz. year. Maybe 10 multiple is my guess once fully valued. It they can prove up more oz. (last year I think they proved up what they mined on 10k meter drilling--just going from memory on md&a--so if they can prove up 20-30 million more oz--might get higher multiple. It seems from what I've been able to gather (which may not be right) the longer the mine life the higher the multiple (assuming no growth). Once get above 20 years mine life, multiple doesn't go up much because of discounting of cash flows what out into the future doesn't have much present value impact. Now if you have growth, expected cash flow mulitple goes up given the mine life is still above 20 years with growth. Maybe others can comment. I could be wrong but I don't think will get that forward cash flow multiple unless prove up longer life at same grade. It all comes down to expected discounted cash flows based on future silver price expectations, costs, mine life, and proven track record of meeting your expectations.
That being said (again could be wrong), I'm hoping for ultimatley 10 times expected cash flow and hoping for higher with drilling success and successful execution. Make any sense? If not, please correct my possible distorted thinking.
With all that, things can get really crazy pricewise in a bull market (look at past history on tech stocks---100's of multiple of expected cash flow based on overly optimistic growth rates that never materialized for many of them-past lesson learned. the hard way ).