The estimated PE for the gold and silver producers in the Gold Bugs index amounts to 26x on the basis of 2010 results, and is expected to fall to 20x by 2013. This suggests that the
market is by no means harbouring euphoric expectations.

Do the math:

Production ~200,000 ounces for 2011

Net/ounce ~ $800

Shares out ~ 300 million

(200,000 x $800)/300,000,000

= $160 million/300 million = .53 cents

x 26 pe

$13.87

x 20 pe

$10.60