RE:RE:RE:RE:See Kinross’s 43-101 today? @rockhead7: If you're interested,
Basically, you should use an estimated amount for the value of the permit, rather than an SP.
From the value of the permit, you must subtract the value of the royalty agreements. This value may correspond to the surrender value. Some shareholders fail to take these royalties into consideration, which is not the case for a buyer, who will reduce his offer according to the loss of earnings that this imposes.
Then you have to divide the balance by the amount of outstanding shares, which gives you an SP. Thus, it will be easier to make the necessary adjustments, after each financing, which imposes a dilution of the shareholders.
Regarding the value of the permit, you have to be careful. In particular, with regard to the calculation of resources. If not recorded in a 43-101 technical report, the estimate has little value, just like the value of ounces of gold.
Regarding the resource categories, it is essential to have as many ounces of gold in the reserve category and in the indicated resources. Inferred resources are unreliable and require a lot of investment to transfer them to the higher category, when possible. For example, Predictive Discovery has 4,000,000 ounces of gold in the Inferred category. They obtained financing of $50,000,000 to carry out drilling, with the objective of transferring part of these ounces to the indicated category. Kandiole and Bankan are different projects, but it gives an idea.
The different categories of resources have been developed by the regulatory authorities in order to protect shareholders, in particular. Overestimating the value of one category over another is not prudent.
Finally, do not forget to take into account the free share that goes to the host country during the operation. Sometimes it's 10%, 15% or 20%. A buyer will adjust his price according to this percentage, indicated in the mining code in force. These percentages vary according to the country and according to the evolution of the mining codes.
In general, explorers still have great difficulty obtaining financing, and limiting the dilution caused by the low valuation by the markets. Consequently, all estimates must be conservative.
Good luck