AMAZING VALUE.....ABSOLUTELY AMAZING !!!Gold is up 20.00 or so today, the HUI & XAU indices jump about 4% or more and here's PAT stuck near 50 cents. My best calculation is that PAT is going to earn 25 cents share and the price should be racing toward $2.50 share on the way to $5.00 per share. Amazing value...absolutely amazing !!!
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Here's my breakdown based upon 60,000 ozs. production in 2008 (45%) PAT, assuming a production cost of $350.00 Oz. and an average Gold price of $700 oz. with 36 Million shares outstanding (40 Million Fully Diluted).
60 Thous. ozs. X's 45% = 27,000 Ozs. = $18,900,000
$18,000,000 X's 50% ='s $9,450,000
$9,450,000 divided by 40 Million shares = .24 cents per share
Use a price earnings multiple of ten for the proven / probable life of the resource (Ten Years) and we have a potential share price of $2.40. There's a lot more potential at depth and a price multiple of ten for a producing mine is conservative.