At a production rate of 120,000 oz/yr and a cash cost of say $550/oz, we would be generating annual cash flows (at $1100 gold) of $66,000,000. A 10x multiple would equate to a share price of about $1.65.

Hey Glorieux,

Regarding price targets based on multiples of earnings.... for a gold miner, could a price target be calculated that's based on some multiple (maybe a lower one because of assumed future variability of the resource's price), PLUS the value of their reserves?

I'd think that, for example, if they found an extra 100kg P&P at Bedard, that would add a certain amount to their share price based on reserves per share outstanding or something.

But I'm new at this. What's the right way of doing it?