Re: An interesting argument...Chuks point
in response to
by
posted on
May 19, 2008 10:13PM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
LOL NO!! 10 million ounces would be beautiful but we don't need anything near that much to see a significant increase in price (meaning 4-5x where we are now). Maybe only 3-5 million.
I remember doing some very crude estimates a while back and I believe I figured the SP to be somewhere in the neighbourhood of $3 for every million ounces proven or inferred. That was taking into account the number of shares outstanding and roughly 1/5 the current price of gold per ounce as a buyout price. I can't honestly find or remember what I had figured out at the time but I remember $3 being in the right ballpark. If anyone had different figures in mind PLEASE elaborate, I'd also like some estimates.
I'm not quite sure what "the investment community can only be rewarded if the resource potential is greater than 10 million ounces" means but a +500% return from the current levels would have a pretty big impact on me I can tell ya that much :) And it wouldn't take 10m IMO.
I personally think they have an excellent chance at having 5m ounces right now and well over 10 after they finish exploring the whole district. Thats me just being optomistic again but if you really sit down and crunch the numbers with the veins they already have it begins to add up very quickly. They can almost certainly extrapolate a few million ounces from the data they have right now. They aren't sitting there crossing their fingers and "hoping" they have gold, they KNOW they have it I can pretty much gaurantee ya that much.
JMHO of course.
Till the NR my friends.
Cheers.
Gamblor.