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

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To: Nostradameus who wrote (43556)	6/30/2007 12:28:24 PM
From: AuBug	Read Replies (1) of 78419

EPM valuation, my naive approach of looking at. If they have $160 million annual cash flow then lets say they are equivalently producing 246,154 AOP of gold at $650/oz. If we lowball the MC/AOP at $2,800 and they have 433,861,496 shares FD we get $1.59/share. If Mr Market values their MC/AOP more in line with low cost gold producers that MC/AOP could increase to $6,901 (see earlier link below) giving $3.92. That's based on the start up production rate for this Fall'07. According to their slide 26 they going to produce 149,000 oz-Au and 26 million lbs-Cu. They'll have debt and a hedge to pay off. Exploration may expand the resource. Buying the EPM.wt.b's (21-Mar-2011, c$1.55) at c$0.51 implies over a 4.5 bagger for the warrants. The a's have less retur and a year less time. I'm bidding on the b's. europeanminerals.com Message 23651351 europeanminerals.com

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