RE: Preliminary economic assesment!!!What the assessment will tells us is how much will it cost to reactivate the plant to go into production. It will also tell us what should be the minimum gold price to make it feasibility. It will also layout an action plan regarding the sequence of ore extraction in order to make the process more profitable. I personally believe that a gold price of $600 makes it a bank feasibility.
Share price is a function of annual profits, number of outstanding shares, growth potential and cash flow multiples., etc.
Assuming that the operating cost is $500 per oz and GG sells the gold for $900 per oz. making a profit of $400 per oz. GG outstanding shares is approx. 180 m. Cash flow multiple varies from 10 to 20....let assume the minimum of 10.
Share price = 100,000 oz/yr x $400/oz profit x cfm 10 divide by 180 m O/S = $2.22
This is the minimum share price after a few months of a proven annualized production rate of 100,000 oz.
Higher gold price, higher cash flow multiple and a lower production cost will drive the share much higher.
Good luck to all.