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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: loantech who wrote (9544)4/23/2006 3:37:50 PM
From: hubris33  Read Replies (1) of 78419
 
Loantech - as a buddy always says, 'that's what makes a market!' <g>

Funny you should mention QEE....I was just looking at it trying to decipher its future. FWIW my calcs suggest that the NEM option price of $0.55 per share translates to an adjusted market cap of ~$100/oz (Mkt Cap/ oz). Since the DEZ deal went through at about 97.72/oz I wonder if that is how NEM valued the company?

Now on a cash flow per share basis and the Yamana figures for CF/sh one can value QEE at 1.09 to 1.32. Of course looking at Net Cash Flow per share gives about a 50% premium to those figures.

My guess is that all QEE needs is a couple of profitable quarters and the market will start to visit the high valuations on the company. Of course continued success at the drill bit wouldn't hurt either!

H3
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