Avion Gold Corp AVGCF

RE: 2010 Profit

[Bobwins]

That cash cost of $450/oz would lead to an estimated "cashflow" of 65million for 2010 NOT net profits.  Cashflow doesn't include noncash charges for depletion, depreciation, amortization, hedge accounting.
I come up with a FD share count of 290 million so my estimated cashflow number is .22.
10X .22 = C$2.20 share price.  That's still a triple from today's price and a good target for mid/late 2010 as these results become reality and are announced.  Cash costs have been higher than $450 so far so the company expects costs to fall as production and efficiency increase.  But the market will need to see progressive improvement before they will give them credit for $450 cash costs. 
We also need Tabakoto to bump the resource and reserve numbers more than today's updated report.  Increased resource will extend the life of the mine enough to justify expanding production capacity to the much talked about 200K/yr.