Chuc, (I like it)
If you remember, Claimstaker's Blackdome Mine was the first project over witch we got excited. Blackdome is supposed to produced 80,000 oz/year, at an approx. $200/oz profit!!! The silver plus the difference in gold price will pay for production costs!
Considering the 10,000,000 outstanding shares, we are looking at earnings of ~ $1.60/share!!! Since the market pays at least 10 times, that would give us $16 ($8 if we'll have a JV at the time)!!!
And if the other party can't come up with the coin ($2,000,000, and from what I hear they are kind a ... broke!!!), we get it all!!!
Now we have to consider also The Zenda mine in California, witch will come to production in a few months as well!
Add Ghana, Nevada and Timmens and don't you find the stock unbelievably cheap? Now you can see why my 6 months target price is a very very very conservative $8 (could very well be $28 or even $58!)
Have a great one!
Silviu |
