Here is the same formula for end of this year:
| Annual ounces |
170000 |
| Price of gold |
1600 |
| Cost per ounce |
900 |
| Net gain |
700 |
| |
|
| Annual profit |
$ 119,000,000.00 |
| Market valuation |
$ 1,190,000,000.00 |
| Shares |
623,000,000.00 |
| |
|
| Share price |
$ 1.91 |
Note that in both cases I have used FD share float. With the share buyback, this should be marginally lower. Also, in the second scenario, the share price would be $3.12 if undiluted share float. At this price, options and warrants would most likely be cashed in and so I believe anything over $2.00 would be a good time to sell some shares as we are most likely going to feel some pressure from selling to redeem options and warrants.
Glorieux
