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Desert Mountain Energy Corp V.DME

Alternate Symbol(s):  V.DME.W | DMEHF

Desert Mountain Energy Corp. is a Canada-based resource company. The Company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The Company holds properties under lease for helium, oil and natural gas in the Holbrook Basin of Northern Arizona. The Holbrook Basin Helium Project comprises +1000,000 acres of key Helium prospects under lease. Located in the prolific Holbrook Basin in Northeast Arizona. Its secondary focus is developing hydrogen assets in the McCauley Helium Field. Noble gases or inert gases are six gaseous elements found in small amounts in the Earth’s atmosphere. They include helium (He), neon (Ne), argon (Ar), krypton (Kr), xenon (Xe), and radon (Rn).


TSXV:DME - Post by User

Comment by HeliumHighon Apr 03, 2023 5:43pm
134 Views
Post# 35377286

RE:Share price

RE:Share priceWell first off - although earnings certainly have an effect stock price, there is no necessary "if X then Y" relationship between earnings and stock price as a general proposition.  The stock price is affected by many other factors (ex. general economic conditions, industry sentiment, are earnings increasing or decreasing, total future earnings, total asset value, total debt, liquidity/cashflow, etc.).

However, if one were to assume a relatively conservative P/E ratio of 10, it would take C$49.5M (US$39M) of annual earnings to support a price per share of C$4.50.

Calculations:
110,000,000 (fully-diluted shares) x C$4.50 (price per share) = Market cap of C$495M
C$495M, divided by 10 (P/E ratio) = C$49.5M annual earnings

Hope that is helpful.
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