OTCPK:MEAOD - Post by User
Comment by
JRaffleson Aug 30, 2011 10:39am
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Post# 18993005
RE: Market Cap / P : E ratio
RE: Market Cap / P : E ratio
Production of 60000 oz / year at a cost of 464.00.Our current market cap is 100 million approx.Gold at 1800.00/oz thats a profit of 1400.00/oz X 60000 = 84 000 000.00.Using a conservative P/E of 5, that equals a market cap of around 400 million....4 X the current share price. Most of the large cap gold producers have P :E ratio of 20 plus...
Due your own DD...
20% of the above 60,000 oz /year belongs to Sandstorm
- by your metrics, that gives a market cap of about $330m
- at yesterdays close 200m shares @ 0.36 = C$72m = 4.5 x above projected market cap.