RE:RE:Question for the community.I agree mac but ... just for fun I am trying to figure out what metric to use when adding value to the ounces in the ground when the POG increases.
If we use $100/oz (like Sprott encourages) then we are getting 5.5% of the value of gold @ $1800/oz gold price.
$100/$1800 = .05555555..... (Call it 5.5%.)
'IF' gold moves up by $20/oz and we apply this percentage this 'should' translate into $1.10 ($20 * 5.5%) of added value to each ounce in the ground.
(Remember ... this is just for fun so it is not super technical.)
With that simple math our total value of ounces in the ground would increase by $1.10 * 4.1Million Ounces (Yes ... there are A LOT more than 4.1 here but ... again ... just for fun...)
That would increase our oz in the ground value by $4,510,000 for every $20 increase in the price of gold.
Our current market cap is 'about' $101 million. If our 'value' increases by $4.51mill per $20 increase in gold that 'could' equal a (roughly) 4.5% increase in share price per $20 change in gold.
Currently we are .425/share. So ... If gold goes up $20 then it would be reasonable to expect our share value to increase to .445 (Roughly a two cent gain.)
This means that a $10 increase in gold would be (roughly) a one cent gain.
Again ... just for fun.
The updside here is MASSIVE as we are in a strongly upward gold price trend.
Just some fun thoughts.