Colossus Minerals Inc COLUF

RE: Analyst opinions

[bob4977]

Jamie Spratt, Clarus Securities (8/8/12) "We highlight five projects and companies which combine world-class grades with small-scale capex and relatively low cash costs. . .[one is] Colossus Minerals Ltd., which has a 75% interest in the high-grade Serra Pelada project in Brazil expected to commence production in H2/13. Clarus' drill database shows a length weighted average Au grade of 24.8 g/t plus a Pt grade of 9 g/t and a Pd grade of 10.5 g/t (Au eq 28 g/t); an initial bulk sample is expected in Q4/12 and a production of 280 Koz Au eq at $170/oz cash cost is estimated based on a conservative mining cost estimate."

If the above data is close to accurate, 280k @ $170 leaves you a profit of over $1400 per oz. 280K @ $1400 is $392 million profit. Now you take out the 25% Coomisgasp share and you are left with 294 million. Lets take another third of that out for various taxes and you are left with $200 million. Fully diluted, they have 118 million shares outstanding. That would give you earnings of $1.69 per share. Seeing that the current price of CSI is $4.40 that gives you a forward P/E of 2.6. If these figures are close to accurate I see this stock easily triple within the first few months of production with a steady rise to a P/E of 10-15 as the market starts believing the numbers ( $17-25).

Bob