In spite of the fact that we don't know anything about the CPU, screen size, cameras, or in fact any other solid info about the iPad Mini, Ming-Chi Kuo thinks the 16GB model will cost $195 in parts. And assuming there is a 4G 64GB model, that device will cost around $254 in terms of components.
Snide comments aside, he could be right. While we don't know what the iPad Mini will contain, the price estimates above assume that it will be based on the same A5X chip found in the new iPad as well as use other premium components. If this guess is correct then it would fit the $329 price rumor which I disbelieved on Saturday.
The A5X chip has like 50 bajillion cores built into it, between the CPU and graphics processors. You don't need something that powerful to run a 7" screen - not unless the tablet also has a Retina screen. And I think this estimate assumes it does have a retina screen.
In any case, we're going to have to wait until tomorrow to know for sure.
Update: Andrys Basten of KindleWorld left a comment and pointed out that this is the same guy who accurately predicted 2 Kindles and a Kindle Fire in the days before the Kindle Fire event last year. So he has a better than even chance of being correct now.