Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Gowest Gold Ltd V.GWA

Alternate Symbol(s):  GWSAF

Gowest Gold Ltd. is a Canada-based gold exploration and development company. The Company’s projects include Frankfield, Pipestone, Tully and Whitney. The Company is focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw) on the Frankfield Property. The Frankfield Property covers an area of approximately 842 hectares and is comprised of eight mining leases. The Company’s wholly owned Pipestone East Gowest, which consists of 21 unpatented mining claims (4,274 hectares). The Tully North Property is located three kilometers (km) northeast of the Bradshaw Gold Deposit and is comprised of one mining lease and one unpatented claim totaling 228 hectares. The Gowest Whitney Property consists of nine patented claims (mining and surface rights) totaling approximately 144 hectares. It is located in the center of the Timmins Gold Camp, 10 km west of downtown Timmins, Ontario and 25 km south of the Bradshaw Gold Deposit.


TSXV:GWA - Post by User

Bullboard Posts
Comment by douginilon Sep 09, 2011 2:28pm
283 Views
Post# 19027411

RE: Daydreaming zzzzzzZZZZ$$$$$$$$

RE: Daydreaming zzzzzzZZZZ$$$$$$$$
On the potential value for a share.

Below is a procedure (one of the many procedures) for estimating a $/Share value of an exploration mining stock .  It is a quick & dirty one, and one that an investor "on the outside" can use.  The math is pretty simple.


A = Quantity of company shares - use 113,300,000

B = Recoverable ounces estimated; Lets assume 1,200,000

C = B / A = 1,200,000 / 113,300,000 = 0.0106 ounces of Gold in the ground per Share

D = Market price per ounces that a major has in its model; Lets assume US$ 1,000 (1).  

E = C x D = 0.0115 x 1,000 = Value of the Gold in the ground per share = US$ 10.60

F = Percentage of the value in the ground that a major would pay to buy out.  Lets use 10%  (2)

G = E x F = US$ 11.5 x 10% = $1.06 /share

(1) This is an estimated figure that the user thinks gold will average over the next 10-20 years.   Using todays spot market is probably unrealistic.

(2) See MB’s article in April 2010 (https://www.theaureport.com/pub/na/6054) Percentage ranged from 10% to 40%.    Using 10% essentially means that we are discounting the value in the ground by 90% to cover various risks, eg: the cost of building the mine, the variability of the selling price and the cost of extracting and processing the ore over 10-20 years, and the many other unknowns that would impact the cash flow stream over the years, and of course the inaccuracies of the other data that goes into the discounted cash flow model and the selection of the discount percentage to use.

THIS IS JUST MY OPINION, USE YOUR OWN ASSUMPTIONS ON OUNCES REPORTED, MARKET PRICE, AND PERCENTAGE THAT A MAJOR WOULD BE WILLING TO PAY.

Douginil
Bullboard Posts