Production Numbers soon! netwide2 comments, "Yes, this is significant. They are grading over 1 oz/ton in a couple of holes, and no reaction? Strange days indeed. This stock should be valued at least .50 cents on what is known. Guess institutional investors are waiting for gold prodcution reports before taking out the asks."
Production Numbers soon to come,...50 cents? We know they forecast 25Koz for 2012 partial year and 40Koz for 2013 full year. MCap today at $29.63M at SP
.16 with 185.8M o/s shares. I think at one time cash cost estimates were $650/oz, I'll conservatively use $800 and all in costs of $1000, POG $1600.
Just looking at MCap $29M, Revenues for 2012 should be $40M, and for 2013 at $64M, twice todays depressed MCap.
As for Real Earnings using an all in cost of 1K, and profit of $600/oz, 2012 earnings of $15M or 8 cents a share. For 2013 we would realize $24M or 13 cents a share. Now factor a conservative Five times market multiple on earnings, 2012 SP could be valued at 40 cents, 2013 at 65 cents (a 10x multiple double)
IMO POG is the Perfect Storm just a brewing, and can only go higher, which would add to the bottomline. If Total Costs are only $800/oz then our bottomline increases again. (POG $1600, Costs $800, Earnings 2012 are $20M, 2013 $32M)
Production = POG - Total Costs = Real Earnings x Market Multiple = SP
I know todays $29M MCap is out of touch of the Producer Armistice with first production numbers soon and can conservatively see by year-end with guidance on 2013 production a MCap near $120M, a minimum 4 times higher todays value and a
.64 shareprice, plus Kerr-Addison potential.
Cheers, Mark