In a couple of months, Patricia Mining (PAT.V) will become Canada's next gold producer. They just hired a new CEO who has friends with very deep pockets.
Fully diluted, there are approx 32 million shares outstanding. At $1.00/sh, the markets valuation of Patricia Mining is $32M CAN.
The Island Gold mine is expected to produce minimum 60,000 ounces per year. They have a JV with Richmont (RIC.T) and they share the profits 45/55.
With gold at $635 U.S., that's $38,100,000 U.S. of total revenue per year. That's about $42,672,000 CAN.
A recent figure they came up with for costs, is that it will cost $300/oz CAN to produce the gold. That's $18M CAN.
So, gross profit from the sale of gold would be total of $24,672,000 CAN.
At the start, Patricia gets 30% of that. When Richmont's capital costs are recouped, Patricia then gets 45% of that.
So, as soon as production starts (on target for mid July), Patricia will have income of at least $617k CAN. per month. Minimum. That's $7.4M CAN. per year in profit. That's .23 EPS. After Richmont recoups their expenses, that figure rises to $11.1M per year, or .35 EPS.
Now do the math with 100,000 oz/year. And $800 gold.
This is a $3-$4 stock...easy. |
