LONDON, January 28 /PRNewswire/ -- Edison InvestmRThis is about in line with what I have seen in the past for all 3 categories as far as valuation:
LONDON, January 28 /PRNewswire/ -- Edison Investment Research has re-run its analysis to determine differentiated values for 'measured', 'indicated' and 'inferred' resource ounces to include the Canadian, Australian and South African markets as well as the London one. In doing so, it has been able to determine that the average value of a 'measured' resource ounce globally is US$340/oz, while that of an 'indicated' ounce is US$159/oz and that of an 'inferred' ounce is US$34/oz (excluding Witwatersrand ounces). An average ounce is worth US$158.56/oz, which contrasts sharply with both its cost of discovery (US$8.81/oz, as determined by leading international accountancy firm BDO) and a historic benchmark valuation of US$35/oz.
If they were able to put the 1M into measured/indicated and bring an additional 1.5M inferred into the fold you'd get:
(340+159)/2 = 250/ounce x 1M = 250M
35/ounce x 1.5M = 52.5M
New Mkt Cap = 302.5M
If that happened the stock would soar. I'm going to do a rough resource calc in the next month or two and I will post it here for input, along with all my calculations