Resource Capital Gold Corp GDPEF

RE:RE:RE:RE:RE:*****WHAT HAS RCG DONE FOR "US" TODAY*******

[LeftBook]

For back of the envelope calculations I use ...

PEA
pre-tax NPV $121.1
post-tax NPV $89.2
life 10 years

$121.1M/10years = $12.1M/yr pre-tax
$89.2M/10years = $8.9M/yr post tax

If next year was the first year of production, then I would expect book value to go up by $12.1M.      $13.0M + $12.1M = $25.1M

In comparison, the PEA models $10.7M ($10,715,500) of cummulative cash flow for the first year of production in the NPV calculations with $3.6M of taxes paid. I expect the book value to go up by $10.7M + $3.6M = $14.3M.   $13.0M + $14.3M = $27.3M

RCG does not have the cash to pull it off on its own. Creditors are rightly expecting to be paid. There are other important operational concerns to consider that would resulted in an adjusted book value or cash flow. But book value as of Sept 2018 and an approximation of book value at the end of the first year of production does give a good first estimate of the value of RCG.

The current book value gets dwarfed if you take the numbers 10 years out. 


Notes:
NPV calc found on pg 207 of the PEA found on SEDAR.