Hello Fishfinder, thank you for your kind reply. If my memory serves me correctly, the original potential profit forecast for the gold projects was about 10 million. I do not know, but I would imagine gold was about A$1100 and ounce back then and it would be interesting to do the calculation at the current gold price (its not linear) as each $ rise above the base has a substantial impact on the potential profit. But suppose the profit is lets say $25 million after payment of all taxes, royalties, etc etc, then if there are say 150 million shares on issue at the time that is 16 cents a share. Obviously I do not know whether the Directors would declare a modest dividend or keep the funds for future growth. Gold Companies, even NCM and LGL do not have a reputation for paying TLS type dividends so my guess is that shareholders will enjoy a poential return on capital rather than a dividend. I suspect the downside in TMX at the current gold price is minimal. But there are so many active companies out there, who are drilling, I personally prefer to keep my capital working on the coal face and not the boardroom. But maybe that's why I'm not rich.
Good luck with your investment.
TMX Price at posting:
7.3¢ Sentiment: None Disclosure: Held
