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PMI GOLD CORPORATION PMVGF



GREY:PMVGF - Post by User

Comment by OracleOfOttawaon Jan 12, 2012 5:08pm
301 Views
Post# 19398487

RE: news out

RE: news out

Have a little fun with numbers....

the current gold price is about 25% above 1300 - assuming it stays there and doesn't go down (or up???) between now and 2014...

according to this:

Sensitivities

The key sensitivities are set out in the associated table.

 

           KEY SENSITIVITIESFactor           Change   Effect on NPVGold price          +10%            +28%     Operating costs     +10%            -15%     Capital costs       +10%             -4%     Ore grade           -10%            -28%   

you would then increase the NPV by 28% for 10%, so another 28%, then another 14%?

i know the math is wrong somewhere but if the NPV (which is currently 414 M after tax) goes up by 28% if gold goes up by 10%, then it goes up a lot more than 28% if gold goes up by 25% from 1300$ (which it is today)

at 414M, the shares are worth around $2? so at the current gold price, they should be worth....

and remember, this is just one of our properties...

happy times ahead my friends...

especially interesting is this:

"With exploration ramping up at Obotan, and across our regional tenement holdings at Kubi and Asanko, we are looking forward to a period of strong news flow from drilling as well as a further upgrade of the JORC/NI 43-101 resource base at the Obotan project next month.

got to love the idea of "strong news flow from drilling" since that is what drives stocks like this.

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