RE:Some mathGold price at $1650 US now ($100 increase from $1550) adds another $12,500,000 CAD to revenues and 'profit' with costs at $1000 US per ounce.
36 cents/sh CAD per year in profit.
Gold going up just makes this project look better and better if it goes ahead as planned.
rborhi wrote: So let's say they get on track with 95,000 oz production per year, with $1000/oz cost and gold price of $1550.
95,000 x $1550 = $147,250,000 revenue
95,000 x $1000 = $95,000,000 cost
leaves $52,250,000 profit US dollars = $68,000,000 CAD
with 222 million shares fully diluted, that's 30 cents/sh per year profit.
So what multiple to put on those earning, 5x is $1.50 share price, 10x is $3.00 share price.
Say the profit is lower by a third at 20 cents/sh, you still get $1.00 to $2.00 per share.
And gold price could be higher by July.
If all goes according to their plans.