$PZG : Paramount Gold Nevada — Independent Economic Analysis

Long-Term Price Case$1,700/oz. Au & $24/oz. Ag
Flagship ProjectGrassy Mountain
Mineral Resources (M&I)1,103,461 AuEq ozs.
Mineral Reserves369,285 AuEq ozs.
Fully-Diluted Shares29,288,909 
Fully-Diluted Market Cap23,724,016
Recovery95%
Average Annual Production47,706 AuEqu ozs.
LoM7.25 Years.
Payable Product357,794 AuEq ozs.
True All-in Cost (TAIC) $1,008/oz.
Gross Revenue$608,249,800
Transportation & Refining Cost($1,882,000)
Sherry & Yates Agreement($9,095,517)
Total Operating Cost($185,789,000)
Operating Profit$411,483,283
Net Taxable Income (Net of Depreciation & Applied Loss [ ($158,880,000) ])$252,603,283
Federal Income Taxes($53,046,689)
Total Capital Cost($110,947,000)
Net Income$247,489,594
Net Profit Margin41%
Absolute Cost Structure (ACS)59%
True Value$8.45/sh.
Cash Flow Multiple5x
Annual Cash Flow$33,012,552
Future Market Cap$165,062,070
Future Market Cap Growth596%
Target$5.64/sh.

Notes: All Values in U.S. Dollars.

Paramount Gold Nevada is a growth company in the making and will likely be awarded a rich premium on the back of timely execution, exemplary management, a robust asset pipeline in a friendly jurisdiction, and a high probability of discovery at Frost.

Paramount’s Net Profit Margin is good and it has an excellent Absolute Cost Structure which enable us to award the company with a 5x cash flow multiple resulting in possible Market Cap appreciation of up to 596%.

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