Oromin Explorations Ltd OLEPF

RE: Honest Questions

[tony1969]

Riffdoc, since you are asking for opinions, I will give you mine.  I do not believe that $200 much less $300 per ounce of gold in the ground is realistic. There is really no blueprint or scale that is 100% accurate on putting a value on the gold.  It all depends on many factors such as grade, location, scarcity, upside potential of property, motivated buyer or buyers, political stability including mining laws,etc... My ball park figure would be between $225 million to $375 million for OLE's 43.5% share.  That equates to anywhere from $1.50 to $2.50 per share.  That $2.50 per share figure values the property at about $860 million.  How do I arrive at these figures?

There is a columnist here on Stockhouse  (Danny Deadlock)who tracks the value of what companies are valued at compared to their gold in the ground.  He tracks a wide variety of stocks in different places of the world, with different gold grades, future potential, etc... Last month he posted them and the average value was about $60 to $65 per ounce in the ground.  I believe that OLE deserves a little bit of a premium to this because as Mackie said their high grade is very rare and the location that they are in is surrounded by millions of ounces of gold. We know we have about 5.5Moz now.  Blue sky is about 9Moz according to OLE. If we use 7Moz at around $100 per ounce you get $700 million or $2.04 per share.  All just my opinion.  Comments?