A year from now, BRD should be worth at least $2.00 by the end of 2013 Here is why.
for 2013, production is expected to increase to 100,000 ounces (rough number for ease of calculation).
Assuming $1500 per ounce price and taking the cost of $700 per ounce out, BRD should net $800 per ounce. This implies revenue of $80 mil.
Taking the capex of $60 mil out, the net earning should be around $20 mil.
With 210 Mil shares outstanding, EPS should be around $0.10.
With production going up from 77K ounce for 2012 to 100K ounces for 2013 implies a growth of about 30%
30% growth is typically rewarded with at least 20x which means $2.00 valuation.
This is an extremely conservative calculation. The stock should trade higher than $2.00 by the end of 2013 which gives us a 100% return at the current stock price.
@ 700 an oz. break even....gold gonna have to drop big time for them to lose money...so, I hope you don't have to do like that guy in Canada that got caught drinkin' and ate his shorts thinkin' he could pass a breath test at the local mountie office...I hear tell he got a brown mustache from doin' that....!