Re: Price Targets
in response to
by
posted on
Mar 02, 2010 01:06AM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
"wondering what the accuracy and timeline is for the majority of these price projections??"
I dont know the answer to this so dont quote me but from my understanding they are tyipcally a 12 month target, but this is just what i've come across. The accuracy is all over the board. Especially for a junior. Look how many people could have predicted Ford tumbling down to 1.50 then shooting way past 10 bucks.... In the end id say its a descent educated guess but other companies tend to be a bit more conservative on their guessing.
"Also...was/is there any discussion regarding expectations for the full 43-101?? Does this need to happen prior to a TSX listing??"
I'm sure a full 43-101 is in the talks but it is NOT requried for TSX listing. we now have all that which is required. I expect them to be filing for TSX over the next couple months.
"Lastly...was today's release already factored into the stock price?? Someone once said that $1 per 1M oz in relation to shareprice is quite reasonable..."
please do not mistake share price with market cap. The share price is virtually irrelevant to the amount of oz. What is relevant is the Market Cap. Say we have about $950 Million in market cap, so if we say $350 Million is torwards infrastructure then that would imply we have $600 Million for our 3 Million oz. This will imply we are pricing the gold at about 200$ an oz. now if that we find say another 3Million oz, then the market cap should in theory go up another $600 Million. putting us at 1.5 Billion (600 + 600 +350).
Now we just happen to have 265 million shares. so from 950 M$/265 share = 3.5 $/share and if we gained 3 Million oz went up to $1.5 B market cap/265 M share = 5.66 $/share
Now lets exaggerate that number, say we only had 1 million shares instead of 265.
Well then the shares would be worth 950$ /sahre ($950 M/ 1M shares)in the first example, and if we had an extra 3Million oz they would now be worth 1500$/share (1500 M/1M shares). SO by adding more gold the share price can go up by different values but the market cap would always go up by the same amount. Do you see how share prices doesnt really relate to anything but everything is dependent on market cap. Now if you already knew this and i misinterpreted your question i must apologize i just dont want anyone working off the wrong assumptions.
Ok sometimes im bad at explaining things, hopefully i didnt make things more complicated, if so ignore my post.
Jeff