Posted 11/24/2012 11:17 (#2714086 - in reply to #2714060) Subject: Re: Mining CEO discuss future of gold market
and so back to the origin of this thread ...... The only hiccup in Mcewens ability to work his plan is his ability to sell the Argentinian copper project which he says he will get done. My guess is it will be for 400 million plus. He needs 200 million to finish el gallo 2, I suspect he will pay a dividend and he will have some 100 million left to buy another property or company which he can then use the profits from el gallo, and gold bar to finance the new project and so on.
But lets first just look at his projection of 280k ounces of production in 2015. If the all in cost of production climbs to 1300 an ounce and gold is selling at 1800 an ounce, profit will rest at 500 an ounce or so which amounts to 140 million or 50 cents a share. 18 times earnings gets 9 bucks a share. each 500 dollar increase in gold price from there adds 9 bucks a share theoretically. Just a few back of napkin numbers. If the general public starts to buy pm equities valuations can go way up from 18 times earnings depending on the compnies reserves, management and growth profile.