News out- ELD provides updated outlook Just took a quick look at the news release. If ELD can achieve their 2020 targets and the POG is at $1300, ELD should be worth at least double from today's price.
830,000 oz x $650/oz ($1300/oz - $650 AISC)
Then take that total of $539,500,000 and divide it by the number of shares outstanding 450,663,800 and you get:
$1.20 /share - then give this yearly earnings number a multiple of 10 and you have:
$12.00/share.
Factors to consider in 2020 are :
The actual price of gold - anything over $1300/oz would be beneficial to the share price.
Any Non-sustaining capital expenditures - not mentioned.
The number of shares outstanding in 2020
This could be a great investment for a shareholder willing to hold ELD for 3 to 4 years.
2020 Targets
- Gold production is expected to increase by 110% over 2017 totals (approximately 400,000 ounces of gold) to over 830,000 ounces in 2020.
- All-in sustaining cash costs to decline to under $650 per ounce.
Assumptions
- Long term outlook assumes $1,300 per ounces gold, $18.00 per ounce silver, $6,000 per tonne copper, $2,000 per tonne lead, $2,000 per tonne zinc.
- Rates to the US$: 2.9 TRL; 3.75 BRL; 1.15 EU; 1.25 CAD.