Altintepe Vluation12 Apr 2016 11:30
I have used this from the advfn board on the Ariana thread by someone valuating the Red rabbit project so have used the same principal on Altintepe.
20% of the minimum 30,000 oz annual production is 6,000 oz.
Lets say costs are $600 oz. Gold now £1260 oz so that gives us a margin of $660 or £462.
So 6,000 x £462= £2.772 M.
With 467 million shares in issue if we divide 467 into £2.77 M we get earnings per share of 0.0059.
A conservative ratio of ten times earnings was used so we arrive at a share price of 5.9p
If this formula is correct when we get our 40% after pay back the valuation will be near 12p just on Altintepe alone.
Makes the current share price look stupid.