With gold production of 100,000 ounces annually, at $100 per ounce net, we are looking at $10,000,000 net profit or about $0.30 per share with 33,000,000 shares fully diluted.
Therefore, its P/E would be at current $1.90, is 6.3. Gold stocks have an average ratio of 30.
To obtain the number 30, the price should be at $9.00 assuming price of gold is steady at $280.
This of course is just my own estimate, feasiblity study has not been done yet. Also, my estimate was in US dollars.
I know some longs of IWA are smiling right now.
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By the way, and pardon me, I do not enjoy reading posts about politics in the Caribou or anywhere. This is an investment forum and should not be mixed with politics or religion. Thanks.
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