A price of CA$.35, US$.27 puts the market cap at US$14.3M. This is a ridiculous low market cap given the potential of this company. Given the earnings potential of San Martin and the possibility that El Creston might have some value, I put a "fair" value closer to US$40M. With a decent price of gold, San Martin should be able to earn around $.5M per quarter or $2M per year. A P/E of 12.5 puts the value around $25M. I give El Creston a shot in the dark estimate of $10M. Then there is about $5M for cash and other. However, I have to admit that it could take a long time for the market to realize what I consider a "fair" value. The big problems right now are that San Martin has been losing money for a couple of quarters, and the drill results from El Creston have not shown much so far.
The big question is, what would I be willing to sell for right now? US$14.3M is not going to do it. Waiting for US$40M is not ideal either. I think I would be willing to vote "Yes" at a value of US$20M. That would be a price of CA$.49, US$.38.
I know that number is low for a lot of people on the board, but for me, that would be a minimum acceptable offer. I think it would be a reasonable compromise between what I consider a fair value and how the market has priced this stock over the last year.