RE: RE: Brent Cook at Conference in Vancouver I guess it all depends on the way you look at your apples and oranges.
A person can say that in the first 9 months, GBN had a net earnings of $4M (fairly accurate) and then say, on a fully diluted basis (338,150,756 shares) is equal to a ballpark 1.2 cents a share (1.18) which gives a ballpark multiple of 18X (16.67X more accurate).
I would look at it differently. First I would say that 9 months is not a year and therefore does not reflect the full years profits. Secondly, I would consider that the loss of $7,470 (miniscule) occurred in the first quarter of a company in it's first quarter of commercial production with it's first gold pour only 3 months earlier.
This would leave me with Q2 and Q3, both profitable, of $2.3M and $1.8M, respectively. An exact net earnings for the half year of $4,064,404.
I would say that the company should be valued on a full years net earnings. So, I would double the $4M to equal $8.12M. On a fully diluted basis, the multiple would then be 8.33X.
Myself, I never use a fully diluted float. Can you imagine what GBN could do if the 39,160,123 warrants @ an average of .57/share and 21,091,228 options @ an average of .36/share were cashed.
That's $22,321,270 from warrants and $7,592,842 from options into GBN's bank account. Can you imagine what GBN could do with $29,914,112?
I can!! Golden Heart would also be in production. The mill would be upgraded to 1000 tpd and production would be about 90,000 oz/year.
IMO, using an outstanding float of 284,743,755 shares and a full year of net earnings of $8.12M the multiple is 7X.
Which may or may not be reasonable.
Currently, the company is on the right track ....... profitability. Cash flow funding it's own operations independent of the need to finance from institutions. To re-pay the shareholders - the actual financers.
IMO, investing in this company is investing in it's future potential. Near term growth by doubling annual production from 45,000 to 90,000 oz. Near term growth in reserves and resources from 750,000 to who knows. The potential for a highly profitable company that pays dividends. A future high capacity mill and millions of near surface, 2 - 5 g/t, ounces.