RE: RE: Gold deposits beg for capital
MyStockhouse/Default.aspx?u=3167163"" href="javascript:void(0);">Yukon_Cornelius
I think it indicates market valuation per ounce of the undeveloped, proven deposit.. ie. value of gold in-the-ground which has not been developed or fully developed, not income to the operator. It does not represent a stream of income.
There is a large differential between market price of refined gold (over $1000/oz) and the value the market pays per ounce for a specific property not yet producing ( or perhaps even producing) the ounces of the defined, "proven" resource. What would be of interest to us, I think, is the price the market pays per ounce for an "in-the-ground" proven property. Perhaps some of the listed companies are in limited production, but the analysis does not appear to rely on such production, if any. And other minor properties are disregarded as per asterisk.
The $57.88 figure comes from the second chart down, (SELECTED "TOP ACQUISITION" TARGETS). It appears to consider market price per share, "value"(total market capitalization of the stock expressed in millions of $US or fraction thereof , I believe), size of deposit, and it results in the average per ounce market valuation. Range is from $4.40 to $433.35 per in-the-ground ounce. What is not shown is number of shares outstanding for each listed company, which would be necessary to calculate the market capitalization figure ("value"). I would attribute the differences between the market value for different deposits to be the results of anticipated cost to produce, access, security, other factors, etc. Crystallex, for example is not located in a stable political location and security appears to be a major problem.
"Value" (market capitalization) appears to be divided by number of ounces in the "proven" deposit of each stock and then the decimal is adjusted to units of Dollars from millions. (Crystallex: 0.074 dollars (expressed as a fraction of million) divided by 16.90 = .0004378. Adjusted to Dollars (units) = $4.38 (close to $4.40; why the difference I can't explain).
Taking Novagold as another example. 1.028 divided by 14.70 = 0.0699319. Adjusted = 69.93.)
The adjusted market valuation for each of the 43 stock listed is totaled and then averaged to yield $57.88 ( may be slightly off as shown above). So, consider it a ballpark figure.
Just my understanding
ICBW
dyodd
https://www.mineweb.co.za/mineweb/view/mineweb/en/page33?oid=91112&sn=Detail#
[article courtesy of Siempre 33.