Daniel, if your the Daniel that I've heard about, we have a mutual friend in Michael LeBoeuf (my brother-in-law).
A person in my circle of investors spoke to Eli Constantien yesterday the 16th of Jan. Ele said that IPMCF plans to process about 15,000 to 28,000 tons per day for a total of about 5 to 10 million tons per year when they are fully operational. He says they could produce more but that BD recommends that they limit production to about 1 to 1.5 million oz of gold per year to avoid driving the price of gold below $350.00 per oz.
Based on this, I make the following conservative assumptions:
1. Production is 1 million oz of gold per year at $350 per oz.
2. Production and Administrative costs equal $10,000,000 per year based on $2.00 per ton.
3. Refinery costs equal $35,000,000 assuming 10%. This is a guess. Does anyone know what the refinery will charge?
4. P/E of 10 (most gold stocks that I've looked at seem to have a P/E of 20 to 40).
5. Total shares = 17,100,000.
Results: $305,000,000 net per year for an earnings per share per year of $17.83. At a P/E of 10, each share should be $178.30 (conservative in my opinion, assuming I am not a way off on the refinery expenses).
By the way, it looks like the stock is up sharply this morning. It usually does this the day before a good news release due to maybe some advance information by some investors. Maybe we'll have some good news come monday morning! |
