Gold prices continue to march higher with today the Comex Dec contract trading north of $1500. Since the beginning of Q3 gold is up near $100 and even up >$220 since late May.

What does this mean for GCM?

GCM is expected to produce 240.000ounces in 2019. So, a $200 gain per ounce of gold since May means extrapolated on an annual basis an additional gain of $48mm USD before taxes.

$48mm USD is about 63.8mm CAD at current FX rates.

GCM fully diluted share count is 68mm. So, current rise in gold prices is ADDING around $0.9 per share in EPS before taxes on an annual basis!!

This is significant.

It gets even better. in 2019 Q1, GCM earned US$18mm before taxes. It sold 59k ounces at a realized gold price of $1298. So again, if we extrapolate 2019 Q1 on a  annual basis, i am getting getting a >US100mm profit before taxes. (Q1 @ 18mm + 3x 18mm + $200 gold move x (180.000ounces for Q2Q3Q4).

This is all quick and dirty and i am the first to acknowledge that, but a US$100mm profit before taxes is HUGE, and is giving a EPS of >c$2 per share making this a ridicoulous cheap stock on a Price/Earnings ratio