Richard,
Based on GPGI's news release today, it does appear that they can extract profitably. Looking through their past few months' releases reveals a pre-refining profit of $187,000 at 15 tons/day, their current rate of production. Another release stated that refining costs by Sabin would run $200/ton. They run 324 tons per month at this point, so that is $64,800 to refine it. That leaves them with $122,200/month profit before taxes. Annually, that is 1.466 million, divided by 21 million shares equals about $.07/share earnings. Their current PE is 8. I think avg PE for mining cos is much higher, but lets say 20. That would put the price at .07 x 20 = $1.40. From these levels (.5625/sh current quote), that's a pretty nice return.
I would love to be running numbers like this on Maxam, but that ain't gonna happen for a while, if ever. Do you like GPGI? Anything wrong with it? Thanks. Clark |
