FRP vs QRL
Seeing as Tas20 is catchin some R&R this week,I feel an obligation to take the helm here.
Saturday mornings arent always ideal for crunching numbers,but im committed to keeping u guys up to speed......
Once QRL's Jerritt mine is going full tilt,the will be producing roughly 270k ounces per annum,CASH COST:Just under 300$
Lets take 270k ounces and times that by whats over left when considering a 420$ gold price. 420-300=120x270k= approx $33 million
Lets take the # of shares outstanding: 410,000,000 and divide that by earings of $33,000,000 = approx .12 cents per share
Take QRL's current share price .60 cents and divide by .12 = 5!!!!!
That your P/E of QRL
Now, as Tas20 has demonstrated in previous posts: FRP will be earning minimum .40 cents per share.Times .40 cents by QRL's P/E of 5 and u are left with a $2.00 share price for FRP!
The reason why i feel its appropriate to draw a comparison:
QRL has reverves of roughly 800k ounces (similar to Ovacik when taking into account exploration potential)
FRP has a much lower cash cost and a more efficient,newer mine.
QRL did a 20,000,000 equity financing......as did FRP
QRL did a 25,000,000 debt financing........as will FRP
The difference : FRP also has PERAMA HILL with a 1.2 million ounce resource!!!!!
No matter how many times i throw this calculator against the wall,I get a,catch your breath..........2 dollar share price!!!
Anyone have any input?? If im outta line here,I would appreciate someone setting me straight.
goodluck
Goldbug 317