RE: Scoping Study, Presentation & TradingTockey,
Today, Scotia put in 1 order for a sale of 500,000 shares - and when it wasn't filled at .205, they dumped most of them at .20 cents. It seems there is always one house with a big sale... hopefully there continues to be enough buyers to absorb in this range.
In regards to the numbers post, I think we're a little early staged to be using a forward PE model for valuations, and with Majestic generally being a little optimistic with timeframes and numbers, it would be good to err on the side of caution as these PE forward calculations really won't be valid for a year. That said, with the In situ value, we're still looking at much higher valuation than today and as we get closer to that increase in production, those values will become even higher.
Today - perhaps 30 cents is reasonable (at current 500M shares, Market cap = 150M) with the In Situ resources and the progress to date of the new mill.
In 9 Months, when the warrants are exercised and we presumably have 2 quarters at 1400 TPD, and 1 at 6000 or so TPD, I could see a Market Cap of 250M (similar to Timmins Gold), which would give us approximate .43 cents. This is all hypothetical though. We need to get there first.
In 12 months, when a FY is complete and almost out, and the new FY12 is a quarter into production at (hopefully) 7400 TPD, we can start using forward PE model for valuation...and the valuation will be quite high.
I'm just trying to be realistic with time-frames, unknowns and market valuations as we haven't even seen the real economics in the scoping study (which is necessary) and if resources have been moved from I&I to M&M or P&P...Once the certainty of the resources becomes greater, the valuations change for the better. Let's hope it is sooner than later.
And.. will there be a buyout before we even get to the forward PE calculations? I think so, but who knows.
B