Chris, I'll explain why I question it, and it revolves around my limited, but rapidly improving knowledge of mining. (Don't know much about how a phone works, but invested in Lucent).
It is purely a layman's speculation that if they had that much gold laying around (well, shallow depth is essentially laying around), that they would be worth more than .50 a share. Is not a companies share price determined by it's assets+inventory+future earnings
minus debt minus liabilities x market speculation (i.e. P/E ratio)? With that in mind, 600,000oz of gold at market price $330.00 should be worth $198,000,000.
Now with the outstanding shares of 15,000,000, that should give the share price a little boost of around $13. Minus debt, plus assets, yada yada. Now, earlier I thing someone alluded to the fact that perhaps 50% of the profit from the gold is used to mine the gold, so let's then give it a worth of $150.00 per oz, that's still worth $90 mil, or about $6.00 a share.
That explains my doubt. Please, everyone feel free to correct any of my figures as I would not bet my savings on their accuracy, but they are as accurate as I presently understand the situation.
Steve
P.S. Willyum, in answer to your earlier question about manipulation...No, personally I do not feel it is being manipulated. I think it is cheap for a reason, and I am still trying to determine that reason.
Steve |
