Re: $50 TYHEE IN THREE YEARS- Questions balboabob..fair enough
in response to
by
posted on
Nov 22, 2009 02:18PM
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
Bob, Baires and others,
Here is my thinking:
OK, about three years from now and some assumptions of course....
Tyhee's share price at $2,000 gold and the production rate from the P.A.
Operating cost of $600/ounce
Debt cost for $150M, monthly payment assuming 7yr amortization and 8% cost of money is about $1M.
Yearly profit 165,000 X ($1,400 net profit) - ($12M dept cost) = $219M
Assume 300M shares so earning per share = 0.73
Assume PE ratio of 30
30 = Share Price/0.73 Therefore Share Price = $22/share
Now, $22 is not $50 BUT with things at Clan looking very very promising, I think production rate in PA is conservative, especially outside of three years!
Other situations may present themselves like partnerships, raising capital through further share dilution but if they can get the needed financing, profit and much higher share price is certain.
If gold goes higher, and I bet it will, and if Tyhee gets more of a resource and increases production...well, YOU DO THE MATH!
Then there is the a blow-off phase in gold and mining shares. Tyhee $1,000? lol
Who knows.
So, your possibities are Tyhee to ZERO, Tyhee to $50?, Tyhee to $1,000? Tyhee to ?
I like the risk/reward ration. Just my humble opinion.