Post by
xTimes2 on Apr 29, 2011 11:11am
5x bagger? Contribute!
Quick analysis. Based on FIU's Feb. 2011 investor presentation,
Ezulwini will produce in 2012 approx. 100,000oz of gold at a cost of 1000$/oz approx. At current prices of approx. 1,500$/oz, that is 50M$ in gross profit.
For MWS, again, production will be approx. 100,000/oz of gold, but the cost will be approx. 500$/oz, that is 100M $.
Simple math tells me that the combined gross profit will be 150M$. Now sustract 30 M$ in agency costs (admin. maketing etc. based on past years) and you get 120M$, and sustract another 30 M$ in other expenses (consuting, foreing exchange loss, interest etc.) and you get 90 M$ minus another 10M$ in taxes for 80 M$ net profit. Divided by 300M shares, and you get .26$/share, times 20 (P/E ratio, see semafo T.SMF) and you get approx. 5$/share.
Did not include uranium credit etc. to be conservative. Is that a reasonble approximate for you?
Comment by
metalmaniak on Apr 29, 2011 1:10pm
your finance math is quite rudimentary my dear Watson. First of all you are wrong about the 2012 production #s, they are higher, but more importantly you forget that we have 300 mil in debt, so do the count ev/ebitda instead of p/e.I get 2-3 per share.
Comment by
narmac on Apr 29, 2011 2:40pm
FIU ,,,,,,,,,,NPV ($ millions) Net Present value Feb/11 = $773 Gold just making its move this minute into the stratosphere!! $1569.70