Renforth ValuationI recently found Renforth while searching for undervalued prospect generator/developers in Canada, and I took an initial position.
Based on new Mineral Resource Estimates disclosed in Press Releases by Renforth within the past two weeks, I am putting an initial valuation on New Alger at $7.5 million and Parbec at $8.43 million. This values the company at a minimum of about twice the current market cap without considering any other assets.
My valuation of gold in the ground comes from work done by Cipher Ressearch, who have analyzed more than 200 gold transactions over many years. Their work is available for review at the following link:
https://www.kitco.com/commentaries/2015-06-03/The-Real-Value-of-Gold-in-the-Ground.html
Based on this info, along with the current price of gold, I assign a value of $31/oz. to the existing resources, in all categories, at New Alger and Parbec. $31 shows in the Cipher Research data as the price for Canadian gold in the ground for development projects. I consider Parbec to be more likely for development given the proximity to East Amphi, which I believe will be fully developed and which is little more than 1km from the Parbec boundary.
I believe management will continue to develop information and data on its properties and increase shareholder value over the intermediate and longer term as well. I also like the lean approach to expenditures which will likely cap the future dilution of shareholders at a reasonable level.
Perform your own due diligence on all investments. I am not a specialist in stocks, markets, or gold exploration, just an individual investor. GLTA, Doug