RE:RE:The bottom is in according to many reports late yesterday...Nice ride today confirming the 'bottom is in' narative. The LBMA's been drained as never before seen & the Comex is near empty at under $35m oz's - and this is their number! The simple physics of supply & demand have to kick in at some point and if is that point hopefully we can enjoy more up days to come! After all this past 2 years has been BRUTAL.
Anyone notice the volume after the FED anouncement? Somewhere in the neighbourhood of 1.2 BILLION Comex paper oz's were traded. This would explain the (jobs report -> DXY inspired) action today and serve to help the FED ease into a pivot sooner rather than later.
Clearly shorts (hedge funds) have been kicked squarely in the mouth. This is wonderful to see, and as usual the banks are laughing all the way to...
We need some well timed great news out of Medicine Springs (or GuiGui or Batopilas) as the world turns investment attention towards a legitimate Silver run through $30. This would be epic, and well deserved after the torture we've all been through for literally decades.
I bought this company for all the obvious reasons, but in a nutshell becasue it appears to be another MAG Silver.
When Silver finally comes into favour as the worlds latest investment choice, the price will move to where it should be, which is around 8:1 GSR ($200 range). At that point this company will be MAG on steroids with a market cap that anyone can guess.
For fun what the hell, I'm in an online course which is putting everyone to sleep so here goes...
Inventory will be in the range of (at least) 3 - 400m oz range over three properties (sell the others). If this is the case, then whats the market cap?
Using 1/2 the accepted reasonable 8:1 GSR, or $100 per oz...
- Gross Income = $100 x 350m oz's = $35 billion
- Cost = mine to market = $20 / oz = $7b
- Net Earnings = $28 billion or roughly $280 / share over ? years... (10?)
Then we need to look at P/E ratios
- PE ratio of..? ...Mag's PE is currently 90:1 and they're trading at $13 but then Fortuna has a 30:1 p/e so lets go with that...
Good lord the numbers really sky-rocket... if it's 10 years of mining like crazy then the (forecast) share price must be in the $300 range at minimum... right?
$2.8b per year at 30:1 = $84b / 100m shares (rough numbers) $840 per share
I'm sure I've made a few mistakes - let me know as somehow that seems high... lol