rediculous P/CF ratio message on kitco tells that a ration of 6,5 is average and is at lowest point and same point as 2008
for kitco this is message to tell time to buy
brigus
P/CF on operational cash flow
Based on calculation in last message:
CF for Q1= 24 milj : with gold at 1425 (-4 milj)/cash costs at 680 (-1,3milj)/27000 ounces and this will be forecasted at 24-5,3=18,7 milj for Q2-3-4
makes operational cash flow for 2013 24+18,7+18,7 + 18,7=80 milj
so 80/330=0,24 per share so brigus trades at 0,66/0,24=2,6 times cash flow
forcasted at minimum 6,5 this gives= 6,5* 0,24=1,56 $
at midium 8 this gives = 8 * 0,14=1,9$
worst case senerio q2 will not be at 1200 so situation is really worst case !
cash flow Q1 24 Q2-Q3-Q4 at 1200$/680 cost and 27000
2013= 24 + 12,7 + 12,7 + 12,7= 60 milj
is 0,18 per share
at 6,5 multiple gives 1,18
at 8 gives 1,44
this stock is even at worst case rediculous !
who is keeping this down at all ratio's this is becoming one of the cheapest gold stocks on the planet
+
1) safe jurisdiction
2) joker: big production upgrade nearby 4 km (grey fox) with mine in place that can be upgraded with less capital than a new mine