/biz/ - Business & Finance

>>50612074
Depends on how levered the company is to the commodity. Typically if a company is very profitable you won't get as much leverage (because the company is highly valued) as you would a marginal producer. With gold for example, just divide their market cap by number of ounces produced to see the kind of leverage you get and then take into account mine life and such. With gold producers what you get vary wildly from <$1000/oz of yearly production in market cap to upwards of $10000/oz.