RE: guidelines for gold stocks looking at the article again ... another way to look at this junior is its future cash flow ...again ...the article states that juniors could trade between 15 - 25 times cashflow
dsm in 2005
100 000 oz of gold at a cash cost of 190 u.s
cash flow at 350 gold should be 350 -190 -60 ( additionally cost ) = 100 dollars u.s of cash flow per oz or 135 cdn per oz
therefore cashflow should be 135 * 100 000 = 13 mil cdn per year or .20 cents per share
the article states that most juniors could trade between 15-25 times c/f
.20 cents per share times 15 = 3 dolllars on the low side or
5 dollars on the high side
again both methods ..show dsm ..right now ( gold 350 ) between 3- 5 dollars per share
oh ya .. there plant is given zero value ... the plant to build today would cost 150 mil cdn or 3 dollars per share ... so 8 dollars is a bargain
mack
theres no fever like gold fever
so dsm should be