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BRD Message Board

  • bee_plus_001 bee_plus_001 Jan 20, 2013 11:38 AM Flag

    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.

    Sentiment: Strong Buy

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