RE:RE:Bob MinerGold producers have multiples higher valuation than explorers with the same ounces of resources.
In the absence of cash flows from production, equity dilution gradually diminishes unit value even though market cap may increase .
In the presence of cash flows, dividends can be paid and spin outs of assets can be financed.
Its like chaulk and cheese.
Lets take DPM as an example $10.30 with 185 m shares ).
Its market cap is $1.9 billion yet its gold reserves are modest relative to the expectations for NFG but it produces 300,000 ounces per year which has enabled it to pay a dividend and accumulate over $500 million in cash .
At current value in the ground, NFG would need about 19 m ounces to achieve a market cap of $1.9 b.
Its the basis for my incessant harping that NFG is sufficiently advanced in its discovery stage to initiate early mining of its most precious discoveries todate...high grade , cheap to mine, open pittable gold..