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LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB



TSX:LSG.DB - Post by User

Comment by waltersobchakon Sep 06, 2012 5:40pm
266 Views
Post# 20327572

RE: RE: RE: RE: Re. Vanchester....

RE: RE: RE: RE: Re. Vanchester....

Ok , short and simple .... you value mines on a Net Present Value of the total assets owned by the mine . 15 dolars will be worth at some point in the future , when the company has developed and produced all its assets owned on its books as of today . The variable that needs to remain constant is the price of gold , at these prices , the company with all its assets is worth $6BL at some point in the future . To that you have to discount also future costs , according to him they will be $450M ( this is arguable , you need to add inflation etc.. , but also the price of gold will be higher in the future offsting inflationary costs  ) . The discounting method he uses is dividing Future assets by Future costs . The number he gives you is 15 ... that will be the share price sometime down the line ... The net Present Value of 15 , varies according to calculations , but it should be around 3 bucks ...

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