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Guanajuato Silver: Stock Price Estimate at $100 Silver
Step 1: Production and Revenue
- Projected Production: 6M oz AgEq annually.
- Silver Price: $100/oz.
- Revenue = Production × Silver Price = 6,000,000 × 100 = $600,000,000 USD.
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Step 2: Free Cash Flow (FCF)
- AISC: $22/oz AgEq.
- Total Costs = Production × AISC = 6,000,000 × 22 = $132,000,000 USD.
- FCF = Revenue - Costs = 600,000,000 - 132,000,000 = $468,000,000 USD.
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Step 3: Valuation
- FCF Multiple: 10x.
- Market Cap = FCF × 10 = 468,000,000 × 10 = $4,680,000,000 USD.
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Step 4: Stock Price
- Shares Outstanding: 100M.
- Stock Price = Market Cap ÷ Shares Outstanding = 4,680,000,000 ÷ 100,000,000 = $46.80 USD.
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Conclusion
If silver reaches $100/oz and Guanajuato Silver produces 6M oz AgEq annually, the estimated stock price could be $46.80 per share. This reflects the company's strong leverage to rising silver prices.
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