To calculate the stock price of Aya Gold & Silver if silver reaches $100 per ounce, we can follow a similar approach to the previous calculation:
Assumptions
- Production Target: 7 million ounces of silver annually from Zgounder.
- Silver Price: $100 per ounce.
Revenue Calculation
- Annual Revenue: Annual Revenue=Production×Price\text{Annual Revenue} = \text{Production} \times \text{Price}Annual Revenue=Production×Price Annual Revenue=7,000,000 oz×100 USD/oz=700,000,000 USD\text{Annual Revenue} = 7,000,000 \text{ oz} \times 100 \text{ USD/oz} = 700,000,000 \text{ USD}Annual Revenue=7,000,000 oz×100 USD/oz=700,000,000 USD
Market Capitalization
Using a valuation of $100 per ounce for total resources, we first need to consider the total resources (100 million ounces) as follows:
- Total Market Cap: Market Cap=Total Resources×Value per oz\text{Market Cap} = \text{Total Resources} \times \text{Value per oz}Market Cap=Total Resources×Value per oz Market Cap=100,000,000 oz×100 USD/oz=10,000,000,000 USD\text{Market Cap} = 100,000,000 \text{ oz} \times 100 \text{ USD/oz} = 10,000,000,000 \text{ USD}Market Cap=100,000,000 oz×100 USD/oz=10,000,000,000 USD
Estimated Stock Price
Assuming 135 million shares outstanding, the stock price would be calculated as follows:
Stock Price=Market CapShares Outstanding=10,000,000,000135,000,000≈74.07 USD\text{Stock Price} = \frac{\text{Market Cap}}{\text{Shares Outstanding}} = \frac{10,000,000,000}{135,000,000} \approx 74.07 \text{ USD}Stock Price=Shares OutstandingMarket Cap=135,000,00010,000,000,000≈74.07 USD
Summary
If silver reaches $100 per ounce and Aya Gold & Silver successfully produces 7 million ounces annually, the estimated stock price could be around $74.07 per share, based on the value derived from total resources. This estimate reflects the potential significant upside should silver prices rise dramatically, highlighting the company's leverage to higher silver prices.
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Disclaimer
The user RockeTeller has a position in TSX:AYA. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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