Rough mathI don't think this release was much of a surprise, as we knew the plant was operational.
As far as the move in share price goes, it's only at the equivalent of 10 cents pre-consolidation. If you look at today's gold price and our last report in terms of costs/ounce, we're about $350 per ounce into the black. Convert that to Canadian dollars and that's about $470 CDN per ounce in profits. Obviously these numbers fluctuate greatly over time, but if things even stay the same and gold doesn't run up further, the numbers are decent.
$470 x 20,000 ounces = $9,400,000 annually. That includes no revenue from the new plant.
If you take roughly $10 million profit across 49 million shares that leaves us with about 20 cents per share profit.
if you figure a 10 x's multiple is deserved, then cut that in half to be conservative, you gotta see at least a $1 share price being fair if the sector catches any kind of breeze at its back. But that's being very conservative.
If the plant brings in a few million, or if we sell our spare property, or if the gold price rises another $100 or more, or if the moly assets recover, we could be talking $4-5.
its a lot of rough math and hypotheticals, but there's potential to make investors happy again.