Seems there are a lot of numbers out there concerning our #shares outstanding (most of the wrong ones mine, sadly)...my trading site shows 367M shares outstanding, with a little over 45M tied up in warrants and options. This conforms with what the website shows. I am clearly going to have to swear off any more late-night math. As well as I can tell, my error was in reading the total #shares traded this year...apologies to all.
This changes the valuation based on 1yr gross profit to $0.54/sh, and 7.10/sh LOM. I suppose one could regard these figures as an estimate of free cash flow per share, since they regard only (supposed) profits, without capex, dilution and the basic cutoff at 600.00/oz for costs. Add in book value per share, you get another .20/sh. As well, this is based solely on SJ and S/LM's current status.
At the current price, we are selling at 2.2X Book Value, which is absurdly low. I would expect this sort of valuation for a company who might have gold in the ground 15 years away from production. Best guess is we are around 7X sales, also very light. Let us keep crossed fingers for a new CEO that Bay Street will like. Things at the mine certainly look positive. AM and KH strike me as being very much on top of things.
1 comment:
Three to five months ago, things were hazy and we wrote more on possibilities only. There were doubts, anxiety, even pain and the tendency to look over our shoulders for bad things to happen.
Now, I am truly elated to see Prod05 able to easily quantity and putting dollar values onto things. Thanks to all those who dedicated themselves to the mines and management, madness seems to have subsided and methods are coming to the front. As such, with this new perception, I would like to see that the coming CEO is a true heavy weight. I do not mind nil dividend being declared near terms but I will certainly judge him against the company's growth, growth rate and the growth of the company's market cap.
Quite obviously, the dirty, messy start-up heavy liftings had been done or in place. So, among other things, he will surely need to deliver on these two scores to prove his worth.
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