GREY:GDPEF - Post by User
Comment by
LeftBookon Jul 05, 2019 3:32pm
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Post# 29890712
RE:RE:RE:RE:Estimate of PwC June 30, 2019 balance sheet
RE:RE:RE:RE:Estimate of PwC June 30, 2019 balance sheet bufordpusser ... I thought I read somewhere that drilling expenses go towards asset value, so if exploration company drills 10 holes at a cost of $ 1 million that return nothing, the asset value on the books would increase 1 milllion dollars, for the record, I been un-able to confirm if this is indeed the case.
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yes. that is exactly the way the balance sheet works.
The cost of the holes gold or not add $1 million to balance sheet.
If the holes hit gold then the value is higher than reported on the balance sheet
The cost of drilling is then an understated proxy of the value of the company.
Otherwise the cost of drilling overstates the value of the company.