Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

NWM Mining Corporation NWMMF



GREY:NWMMF - Post by User

Comment by stocksnbondson Jan 23, 2012 11:02pm
583 Views
Post# 19439943

RE: Very simple math...Carramba et al.....

RE: Very simple math...Carramba et al.....

You may want to fix up your "very simple math."

assuming they do produce 30 000 oz which I doubt............. probably 20 000 if they get lucky (which I really won't mind to be honest) you get.............

1500-800 (costs) = 700 profit per oz

700*30 000=21 000 000

45 000 000/495 000 000= .04/share

This is unrealistic though based on 30 000 oz production.

A more honest approach would be

1600 average revenue per oz for year - 800 cost =800 profit per oz.

800*20 000 (oz mined for year rather than 30 000+ by misleading management)= 16 000 000

16 000 000/495 000 000= .032/share which I consider pretty good.

Slap a 10 factor to the PE (which is low for a gold producer) and you get over 32 cents projection provided they are in full commercial production with 20 000 oz and an 800 cost. My hunch tells me costs may be much higher but I did lowball the oz produced unless management really messes up. If price doesn't move substantially higher very soon, there is a real problem in the company that we have not been made aware of. This is my one big fear.

Good luck to all,

sb 

 

<< Previous
Bullboard Posts
Next >>