Daniel: Forget about a glut of gold, take their best number of 2500 oz/day (10,000 ton/days), take just $75/ton cost of production (they would kill you for the process information that will bring that cost so low with their type of ore) and you get at $330/oz gold (and wait until the elves in Zurich hear about IPMCF and drop gold to $200) yearly gross profits of $22.5 MM, of which IPMCF owns only 70% (I am assuming a 10,000 ton/day facility), or $15.75 MM, of which they get to keep after taxes, lets be generous, 60% or about, $9.5 MM, and lets be extremely generous and say they need not issue a single additional share, so you have about what now 20, 30 MM shares (you never know with these outfits), let say 27 MM shares, so the stock will be worth at 10 PE five years down the road, $3/share, if everything goes absolutely perfect according to your best dreams, and management does not start issuing themeselves yearly bonuses of a million bucks, and the price of gold does not decline further, and no one else is flooding the market with gold, and they are allowed to dump 10,000 tons per day of waste tailings (have you looked at the chemistries required to precipitate gold?) and so on. And you are willing to pay $5 buck a share today for something that under the best of dreams is not worth $3 in five years.
This is what I call very successful hype. You people are throwing numbers such as $500 share (and chuckie of course in his good natured abandon raises the bar even more) and then we get widows klike Olga oputing all their life saving into this thing, as a "long term investment". You people are actually irresponsible. Some would say, criminally so, but I would refrain from that and just say that you cannot use a calculator properly. You make what you want to believe a reality, and when people wander around here, they get carried away in the hype/enthusiasm with abandon.
Zeev |
