Ann: EVG in advanced negotiations with Major Lati, page-6

re: Ann: EVG in advanced negotiations with Ma... well the oppies will have a strike price of 15 cents so I guess have to look at what signifcant event before when the oppies expire at the end of 2011.
I am giving LL (Los Lagunus) a 70% chance of being a success by the end of 2011 running at around 60k ounces per annum lets say gold price is US$900 then and the company nets around $300 of that
$300 * 60K = $18M * 70% = $12.6M per annum
lets give it a PE of 5 (based on short mine life)
so company value of 12.6 * 5 = $63M
If the oppies are in the money and converted then there will be sometihng like 600M shares on issue.
63M /600 = 10.5 cents a share value for LL
guessing add another 2 cents in value for Peru and Equadaor
so gives a sp of 12.5 cents so options still out of the money by Dec 2011. so guessing oppies only trading around 2 cents in January.
The above figures are off the top of my head maybe I am low on production out of LL or my gold price is too low also using PE is rather quick and nasty compared with doing a NPV for the project, anyway I stand to be corrected.