GREY:LACHF - Post by User
Post by
RedHorizonon Feb 10, 2011 6:55am
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Post# 18107418
2013 Valuation
2013 Valuation
LMA claims that in 2013 the VMS will be in production and that adding that will give them 220,000 ounces of company wide production. So my "back of the envelope" calculation is:
Cash cost of $593 which is based upon 130,000 ounces at $671 & 90,000 ounces from the VMS at $482 - see slide 19 for that.
So, the cash margin per ounce is $1360 (today's gold price) minus $593 = $766. Let's be conservative again and call it $750 per ounce of EBITDA.
220,000 x $750 = $165 million per year.
LMA's current fully diluted market cap is $385 million. So LMA is trading for 2.2 x 2013 projected 2013 EBITDA. This also assumes no increase in the gold price between now and then.
LMA of course has to do what they say they will do in terms of getting the VMS into production at the aforementioned cash cost. But assuming that they do what they say they can do, I am not aware of any producing gold miners who are cheaper than this.
GLTA