Forecast Free Cash FlowsEarlier , I estimated topside TPC ( Total Production Costs = Breakeven Price ( everything paid for )) of
$1300 USD.
All cash flows above that level are unencumbered ie free cash flows going directly to the cash position ,as we have substantial forward tax loss pools to offset income taxes .
Assuming LT POG of $1800 USD , free cash flows will be $500 USD per ounce which, @52,000 ounces of production , results in $26 million US in free cash flows or better than $0.10 cad per share.
Current LOM is 5 years ( but extendable when 150,000 ounces of Inferred are available and much more than that below the pit floors ) .
So, free cash flow P/ E is well above 10 times for gold stocks .
I use 5 times which is $130 m USD or $165 m CAD which is $0,50 cad per share
Plus our other multiple assets