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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (24473)	11/7/2006 8:46:10 AM
From: AuBug	Respond to of 78408

"10 times pre-tax operating cash flow would seem reasonable to me, provided they have produced at that rate for at least 2 quarters and the mine life is more than 10 years. Also there will need to be a clear path to minimum 50,000 oz per year in annual gold production for me to be interested. The current production level is way to small to interest me. You and Geomaque's management are obviously clueless (and that is the generous explanation) if you think a 10,000 oz per year producer warrants the same valuation per oz as an intermediate producer." Check back later and you'll see the ramp up. BTW, the current starting rate is 20,000 oz/yr and the ramp plan is simple, just expand the plant and haul ore from one of several surrounding deposits. John has done everything he said he'd do over the last year I've been investing and I believe him when he says he'll have 100,000 oz/yr in 4-5 years. By the time you get interested us clueless ones will have enjoyed a 10-bagger in AUQ.v. "My experience with Geomaque, where I did own a lot of shares at one time, was that the CEO failed to meet his own guidance and therefore shareholder value was destroyed rather than created. Yes he eventually did get into production, but the point was that he did not meet the profit guidance set by himself. So why should I believe him this time around?" Could that be because of a bear market in gold? What year was you experience? Could be he had expectations of a rise in gold prices like most of us and they did not materialize fast enough.