RE: Book ValueGood point Red Horizon and looking at the book value per share is probably the most unfavourable valuation method for La Mancha.
A NPV, P/CF or Oz/MCAP would all be more favourable for La Mancha in comparison with all other producing gold companies I’m familiar with.
Let’s use the most solid major, Kinross Gold corp. as a comparison company.
Kinross trades currently at 21.14 and has a book value per 8.30/share.
In comparison to La Manchas share price of 30 cent and book value of 68.5 cent/share.
Share price/book value for Kinross = 2.55
Share price/book value for La Mancha = 0.44.
This means Kinross has 5.8 times higher valuation then La Mancha if we are comparing the share price/book value per share between the companies.
Kinross has 20% lower cash cost ($400) and are expecting to increase their production with 30%.
La mancha are expecting to increase their production with 40% (assuming 100K oz 2009)
and will probably be able to continue increasing their production in an annual rate of more than 40%
I definitely place my bets on La Mancha (at least as long gold stays above $ 650/Oz)