I f Tyhee gets financing, they will build a mine(s) and go into production. If this all happens, here is what owners of Tyhee have to look forward to:
Assumptions:
Production rate of 150,000 oz/per year.
Total shares outstanding at time of production of 400 Million
Total debt at start of production $150 Million at 8% APR, 8 year amortization:
Monthly payment of $2,120,000 = $25,440,000 per year.
Price / Earnings (PE) Ratio of 30.
Operating cost of $600/ounce (Current est. per Pre-Feas. Study is low 500's)
GOLD PRICE at $2,500 (Sinclair is talking $5,000 now...QE to infinity is in the bag now)
Yearly Gross: 150,000 x $2,500 = $375,000,000 ($375M)
Yearly Net: $375M – (150K x $600) – ($25.44M) = $259.56M
Earnings per share: $259.56M / 400M shares = $ 0.65
Price Per Share(PPS): 30 (PE) = PPS/$0.65
Therefore PPS = $19.50 (140 bagger...LOL)
So, if gold goes higher and/or Tyhee increases production and/or the blow-off
stage occurs eventually in the mining shares, what will Tyhee's share price
potential be?
The average price/share of gold miners in the 1980 blow-off was roughly
$50/share (Inflation adjusted thats near $150/share today)
Tyhee: STILL STRONG BUY
Got Tyhee?