RE:RE:What are people's target price?
Multiplying a conservative operating margin of $400/ounce (including capex) X 10.84 million ounces = $4.37 billion, or $72.83 US/share. This looks at mining all three deposits, which I'm guessing will happen eventually. Half of the ounces would be $2.18 billion, using the same operating margin. At today's share count it would work out to about $36.33 US per share, or $46.02 CAN. To me, this represents one estimate of a fair value. Here's a more conservative valuation based on low ball figures of 140,000oz/year for 19 years. This is 2.67 million oz. A $400/oz margin creates $1.07 billion in value, $17.83 US or $22.58 CAN per share. From a P/E valuation stand point in this latter scenario, 140,000oz/yr X $400 margin = $56 million net income. An extremely attractive 10x P/E = $560 million or $9.33 US/share or $11.82 CAN. 10x P/E is less than the industry average for turn-key mines I do believe... the average may be closer to 20-30x. The GDXJ has a P/E ratio of 20.92.