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

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To: marcos who wrote (44000)7/5/2007 5:34:16 PM
From: tyc:>  Read Replies (1) of 78424
 
>>you should also count the cash coming in on full dilution ... and it is considerable, over 150 millions,

By all means count the cash if you wish, but that wouldn't change the market cap. (If you deduct cash, you would then have "enterprise value" ). Just don't tell yourself that gives leverage of the stock price, 'cause the stock price will include a premium for cash on hand. What I am trying to arrive at is how much the stock price will increase for a given increase in the price of gold. Reasonably... without prejudice or bias.

market cap = enterprise value plus cash. How will it change for an increase in the price of gold. The lower the market cap the better the leverage.
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