Todays Abcourt Mine's market cap is about $30 million. This represents about the same value as the company's past year's revenue earnings of $27.8 million.
In terms of a reasonable valuation, this market cap is a very conservative number that the market has chosen to assign to the company.
And certainly, some of Abcourt's profits may now be redirected into company growth in the near term. This might put a damper on the company's profitability in the next few quarterly financial reports.
But if the SG mine does become a commercial operation early in the next calendar year, then one might expect that by the end of the next calendar year, the company's revenue growth from commercial production might begin to improve in a most dramatic way!
At some point, the company's revenue should almost double in value.
Even with today's conservative market valuation, as the company's revenue starts to grow, the market cap of Abcourt Mines should increase, at least proportionally.
When the company's revenue has finally doubled, we might expect that the price of Abcourt's shares company's might also reach a modest but reasonable valuation of at least 20 cents.
A 100% gain from today's share price represents a pretty good gain that any investor would like to see. This would represent a conservative evaluation of the company's future prospects.
But this kind of move, could prove to be a most positive inducement to bring more shareholders into the fold. Clearly, this company, might again, be seen as a miner, well positioned, for major future growth!
At such a time, it might seem to more prudent for the investment community to start evaluating the company on a more forward P/E basis, especially as more significant profits, begin to enter the company's financial numbers!
This is the kind of reward that a company's shares are given by the market, once a company has made the necessary transition, to better and more consistent earnings, each and every quarter.
Revenue growth is good! But increasing profitability is even better!
Good profit earned in a time of company growth, really wakes the market up!
The Sleeping Giant mine still has a lot to gold to offer company shareholders. But this still remains to be proven to many in a waiting market.
But for the Sleeping Giant Mine, its time of reawakening is now at hand!
Remember that the now defunct Maudore Minerals knew that they had a gem of a mine, needing a little nudge, to get it back on track!
They had the miners!
But they lacked the financial backing to get the job done right!
https://www.newswire.ca/news-releases/maudore-reports-gold-assays-from-underground-drilling-completed-on-605m-and-725m-levels-of-sleeping-giant-mine-514354281.html https://www.newswire.ca/news-releases/maudore-reports-gold-assays-from-underground-drilling-completed-on-605m-and-725m-levels-of-sleeping-giant-mine-514354281.html Today's Abcourt Mines has the success of its Elder Mine to make, what once seemed impossible, possible once again!
Remaining most positive, as always!
All the best! Java