If SLI were trading at $5.00/oz... How many ounces would they have to have? Everyone grab your calculators...
This time in history is interesting because while the price of gold has been above 1500.00 for almost a year now, gold explorers with 43-101 compliant ounces are sitting at their lows. Seafield, as brought to our attention by Chunderman a few posts ago, is trading at $5 to 10$ per ounce. Seafield is not alone. There are scores of juniors trading in that same price range.
At today's share price, if SLI were trading at $5.00/oz, they would have to have 17.4 million 43-101 compliant ounces. Since they actuallly have 4460 compliant ounces, how many discovery ounces are currently baked into the share price?
I realize it is not that simple and much will depend on grade. If SLI proves high grade, valuations could be much higher, but if not, one need only look at XRC for what the future may hold: Caspiche has proven and probable ore reserves of 1.091 billion tonnes containing 19.3 million ounces gold, 4.62 billion pounds copper, 41.5 million ounces silver. It has a net present value of 2.8 billion with a future revenue stream of 27.4 billion. XRC currently trades for $4/ equiv gold oz .
And yet just a few short months ago in the heady "blackout" days, SLI's market cap exceeded XRC's current market cap.