Resource Capital Gold Corp GDPEF

Estimate of PwC June 30, 2019 balance sheet

[LeftBook]

 

My short hand for the details is ..

 

31.3M total assets/liabilities

- 20.5M liabilities incl SISP/DIP

= 10.8M shareholder equity

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The PwC 2019 numbers are very similar to the RCG June 2018 balance sheet.

 

Below is an estimate of the June 30, 2019 PwC balance sheet

(See note 5)

 

ASSETS

Cash                                  10,559

Receivables                       44,254 

Prepaid expenses              63,401 

Net fixed assets (RCG)      19,910

Land  (MGC)                      99,270 

Reclamation bond         1,070,000

Plant and equipment     3,053,588

Exploration assets         1,278,257

Development property 25,653,698

 

Total Assets                 31,292,937

 

 

LIABILITIES

Accounts payable         7,270,353

Promissory notes            103,551      

Credit facility               8,244,300       

Asset Retirement           569,535 

Deferred tax liab.        2,147,000

SISP/DIP                    2,200,000

 

Shareholder equity   10,758,198

 

Total Liabilities          31,292,937

 

 

shares outstanding 174,790,696 shares

 

book value = 6.15c/sh

 

 

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Notes:

 

1)

Development property  

 

purchase price 2016   9,870,602

+ improvements 2017   6,713,704

+ improvements 2018   7,872,214

+ improvements 2019   1,197,178

= Total 25,653,698

 

Improvements are up to June yearend. 

For further details see June 2018 Annual Report pg 20.

 

 

2)

Is the development property worth $25.7M per balance sheet ?

pg 5 of MD&A June 2018

Pg 207 of PEA

 

 

$89.2M Post-tax NPV

216,050 Total ounces recovered 

= $412/oz

 

Value of Dufferin's indicated gold

58,000oz indicated * $412/oz = $23.9M

 

58,000oz indicated

216,050oz Total ounces recovered

10 years of mine life

= 2.7 years to mine indicated gold

 

Atlantic was sold for $440/oz.

It had a much deeper pipeline amd many more ounces.

 

3)

 

Off-balance sheet items

tax credits      $10,000,000 (market value = 1/2 tax credit)

in-situ gold      $7,000,000

+ value of permit         $0

+ production ready        $0

- cost overruns   $7,000,000

= $10,000,000

 

The value of the tax credits has not been market tested and is subjective.

 

4)

Estimated value of in-situ gold at Dufferin Tangier Forest Hill 

700,000oz * $10/oz = CAD$7,000,000

 

 

5)

originally posted on March 19, 2019

 

https://stockhouse.com/companies/bullboard?symbol=v.rcg.h&postid=29507943

 

 

[bufordpusser]

In most cases, true value of the mining properties are a fraction of what the book states, this is why banks never touch them,

[LeftBook]

Some miners trade at a premium to shareholder equity (book value). Others at a discount. The intrinsic or true value is admittedly another beast.   P/B AGB = 4.28 MAE = 1.49 OS  =   0.83 ANX =  0.79 RCG = 0.10   Market Cap AGB = $683.5M ANX =  $35.6M MAE =  $18.9M OS  =   $2.4M RCG = $1.3M   Notes:  

[bufordpusser]

I owned this stock at one and got out at about 21 cents a few years ago, I remember the hype. Market Cap = number of shares x what investors paid for them via hype, irrelvant. Most tsx listed mining companies have no value, when the debt exceeds gold ounces that can be extracted it is worthless, only of value to directors and management that receive a salary. Resource capital is one of the worst

[LeftBook]

bufordpusser wrote ... I owned this stock at one and got out at about 21 cents a few years ago, I remember the hype. Market Cap = number of shares x what investors paid for them via hype, irrelvant. Most tsx listed mining companies have no value, when the debt exceeds gold ounces that can be extracted it is worthless, only of value to directors and management that receive a salary. Resource

[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.

[LeftBook]

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. --- yes. that is exactly the way the balance sheet works.  The cost of the

[LeftBook]

The Exploration assets, Tangier and Forest Hill, are carried on the balance sheet at $1,278,257. That's 500,000oz of indicated and inferred carried at $2.5/oz. If they were drilled the same level of Goldboro they would be worth $15/oz. And still carried at the cost of drilling.