BCN 0.00% 5.0¢ beacon minerals limited

That's not quite how you value a gold company. You use multiples...

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    That's not quite how you value a gold company. You use multiples of annual net revenue, and the average for gold companies is around 13, but some of the bigger companies are valued at 30-47 times earnings, and we have a $17 million tax write off to carry forward too. Anyway, you're right—this is a good company and hopefully won't attract too many day traders or pump and dump specialists. It won't be totally immune, but most people already in realise Beacon's potential. First year profit at $2200 minus $870: 33,250,000 less 17 million, then take tax out of remaining profit. You're left with $28,375,000 and I'm going to give it a multiple of 15 (as a guess and just for fun), which leaves us with $425,625,000 divided by, let's say, 2.7 billion shares in case more people convert oppies soon, and that leaves us with a value of around 15 cents per share. Maybe the market will grow to love Beacon when they update ounces and we end up with a multiple of 20 or 30. This has massive upside potential provided nothing major goes wrong or gold doesn't tank (which I can't see happening at least for a few months, but who knows). And even if gold falls, having one of the lowest AISCs means we can keep the mine open long after everyone else has closed. Anyway, my two cents (or 15 cents, as the case may be ). And, of course, once all oppies are converted, we will see value per share drop slightly, but by then, we are likely to have many, many more ounces confirmed.
 
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