POGIGFirst off, let me say that I fully realize that to make a valuation, there must be a "threshold" amount of
GOIG (Gold in the Ground, to start with, because it must be sufficiently enough ounces to make a mine
viable in the first place. For example, 1 to 2 million ounces probably does NOT CUT the CAKE.
However; 5 million oz. probably does, especially if open pittable----maybe less. More---without a doubt.
I have also been told, that if the number of ounces increases dramitically, then the value used for the
POGIG will be increased somewhat, accordingly. Ie. if a company has 10 million ounces, then the
number used for calculation purposes will also rise accordingly-----BUT----my point is, by & using the
same old and outdated, status quo "laws" is absolutely RIDICULOUS.
The injustice, for the explanation companies, can best be shown by simple math.
We all know what the POG (Price of Gold) is----right now approx. $ 1600----for round figures.
What we know far less is the POGIG, and IF and HOW this also increases accordingly.
The POGIG used seems to me to be rather inflexable----more rigid and fixed.
Valuations all go back to the starting point----the basic fundamentals, which are used!
I will try and demonstrate my point by a chart, using a fixed POGIG, and a variable POG.
POGIG
POGIG POG %age Amount of Increase in POG Amount of Increase in POGIG
______ ______ _____ _____________________ _______________________
$ 100 $ 800 12.5 % 0 0
$ 100 $ 1,000 10 % $ 200 0
$ 100 $ 1,200 8.3 % $ 400 0
$ 100 $ 1,400 7.2 % $ 600 0
$ 100 $ 1,600 6.25 % $ 800 (ie. doubled) 0
$ 100 $ 1,800 5.55 % $ 1,000 0
$ 100 $ 2,000 5 % $ 1,200 0
$ 100 $ 2,400 4.16 % $ 1,400 (ie. tripled) 0
Hello out there-----do you see what I`m getting at.
Just where and when, at what point does the figure used for the POGIG increase, to bring the
resultant percentage back in line with reality.
You may argue, with the figure I use above for the POGIG. But the trend and my agrument,
STILL HOLDS TRUE.
The figure `they`` use for the POGIG is in dire need for revision----UPWARDS.
We all know the POG has and is increasing-----what about the POGIG.
The fundamentals are the crux of the problem, I forsee and challenge.
Mathematically, IF the figure they use for the POGIG in valuations doubles----ie. from the
$ 100 amount I have chosen, to $ 200-----the valuation of their price targets would,
by definition, also DOUBLE----AND the share price of said stock would also RISE.
IE. A $ 6 target would become $ 12.
IF the POGIC even increased by a mere $ 50----from $ 100 to $ 150----the resultant valuation
price would be------50% HIGHER.
IE. A $ 6 target would become $ 9.
I ask you, in the light of the above-----what POGIC is more in touch with the current times, given
the increase, and increasing POG.
BARN BREATH
P.S. This same premis applies to ALL like gold exploration stocks, NOT just TRR.
The current valuation `process`` is becoming more and more in favour of the Major
MINING Companies------to the detriment of the Junior Exploration Companies.
I say something is fundamentaly WRONG, and it has be be ADDRESSED and CHANGED.