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

To: marcos who wrote (59914)	6/9/2008 12:23:10 PM
From: E. Charters	Read Replies (2) \| Respond to of 78405

I was thinking of buying one share of each of the entire TSXV on the theory I was hedging maximally, and that would entice me to follow all the movers and load up when they break. And the additional supposition being that they are unlikely to get much lower. They gotta come back. They always do. It is a question of when. If you take the average tsxv jr. out there, assume 30 million shares, and 1.00 a share average price that would be a market cap of 48 billion for 1600 issuer, which assumes earnings of 6.4 billion, and gross revenue of at least 32 billion. Since employees earn 60% of that, you could employ 460,800 people @50,000 per annum. If they have to go to a share value of 4 times that to be producers, then quadruple that to 2 million employed. There are 18 million in the work force, and 11% used to work in mining and metals so that is a bit high even. You could halve that easily. What it boils down to reasonably is that if 20% of the TSXV turned out to be winners and achieved an average share value based on 30 mill shares of 20 bucks a share we might return to the heyday of CDN mining which was the end of the 80's. Given the work force skills, exploration success, envi regs and investment climate for mining, it does not seem likely. I would think we would be moving heaven and earth do to 1/3 of that. The bucket shop brigade isn't there anymore. EC<:-}