TSX:LSG.DB - Post by User
Comment by
gilon Jun 19, 2010 9:34am
608 Views
Post# 17204265
RE: RE: Interesting article & comments....
RE: RE: Interesting article & comments....Here is my best guess. I will start by using $1250 for the gold price and $650 for the total operating cost per ounce produced. This would leave $180 million in profit per year ( 300,000 ounces x $600 per ounce ). This works out to earnings of approximately
.50 per share ( using 360 million shares outstanding ). Using a 20 PE ratio would give us a share price of $10.00 per share. With that type of profit potential, it's easy to see why Hochshild wants this company.