Post by
astro2821 on May 01, 2015 2:37pm
The Future
LSG has wonderful potential, but its SP is being held back because it has 435,000,000 shares, it doesn't have enough proven reserves and it has $103,000,000 debenture problem. But it has enough production and cashflow to solve all those situations, in about 2 years of normal effecient operation.
Additionally, there is always the hangover of a volitale GOLD PRICE, but taking everything into account, LSG should be over 2.00 which is double where it is today.
So I look at 2 years from now and what I see is no debt, double the reserves it has today, a mill that produces 320,000 OZs a year, an all in cost of production around $500 and a mine life that is growing everyday.
At 1,100 gold US, it makes north of $180,000,000. What does that equate to in SP?
Comment by
SKRiderFan on May 01, 2015 3:41pm
earnings/share x pe =sp. lsg has eps of .06 a p/e of 40 is very reasonable for a gold mining jr. hard to put a real # on it as most jrs are money losers. There fore .06 x 40= ? another interesting # is the debt/equity ratio, lsg is sitting around 25 and 50 is a good # 100 is a scary # . good luck trading