RE:RE:GooseNewbiejoel wrote: That's 75 billion worth of gold now try to tell me this stock is not undervalued.
I wouldn't go as far as to say goose is worth $75 B. But I have the thumbs up for quick back of envelope math that makes it so obvious BTO is a very undervalued stock. So undervalued I'm nervously watching for an opportunistic bid for BTO much like the buy for SBB. Goes around, comes around. I use a different quick calc you're welcome to use. For any gold producer. For every million ounces they produce per year, an increase in gold of $100 Oz will increase profit by $100 million. Using simple math multiples, a simple 10X multiple of earnings would give you an increase in the value of the company of $1 Billion dollars. That's 1 BILLION DOLLARS, per 1 million ounces of @production, per $100 increase in gold. So if we have a 1 million ounce producer and gold is up from $2000 to $2500, that's a $5 Billion increase in the value. Again, that's just the increase in value. So, if you want to quick math the TOTAL Value of the company, you need to have a reserve life. I like everything in 10s. So if your 1 million ounce per year producer has a 10 year reserve life, the TOTAL Value of all those ounces in the ground just went up by 10X that $5 Billion. So $50 BILLION. And that's STILL only representative of the increase in value due to the rise in gold from $2000 to $2500. You can put multiples ON TOP of that $50 BILLION, depending on the cost of production. But, Roughly, if total all in cost after construction, operation,taxes, bribes, and theft is say $1000 per ounce, you can TRIPLE that $50 BILLION to $150 Billion. Not bad for a little Canadian miner with a current market cap of $5 Billion Canadian. Even if you cut it in half because of Mali, it's still a 15 bagger and wicked steal of a takeover target.