HBM trading at 2X PE...as of now. Consider earnings in q4 were 50 cents per share or $2 annualized. Since then the zinc price has gone up 75 cents and the copper price $1.20. The price sensitivitys, according to HBMs Credit Suisse presentation, are 2.9 million canadian per 1 cent US increase in zinc price, and 1.2 million per cent of copper.
So...
2.9 million x 75 = $217 million extra for zinc/ year
1.2 million x110 = $132 million extra for copper/ year
A total of an extra 349 million / 81 mil. shares= $4.30 more per share.
Add the $2 already in the bag and we have earnings of $6.30/ year going forward. Assume the revenue from Balmat, silver and gold will at least cover additional expenses.
Am I wrong??