RE: What are we worth? Petrosar I'm glad PG has some cash to ride out the storm. But your $19 an ounce analysis would apply only if the 7 million ounces was already in Gold bars safely tucked away in a vault with our names on it. No cost to mine, refine, transport.
No, if we held 7 million oz's in a vault, our market-cap would be in the $9.8 Billion neighborhood, or $65.00 per share, based on the oz's alone.
$19.40 per oz is a rough calculation; one that the industry commonly uses to value a co's 'ounces in the ground'. Recent takeovers by larger producer's have fetched anywhere between $50 - $200 per oz. The lower figure is generally offered for bulk tonnage, low grade deposits that require significant Capex, and higher cash costs. The larger figure is given to higher grade, high margin, metallurgically simple deposits that are close to infrastructure. I don't think many will argue that Trans Cda might fall roughly half way between both camps.........$100.00 per oz is likely what our 7 million oz's is worth. The ultimate value of Rahill-Bonanza alone might dwarf that figure many times over.