RE:RE:RE:RE:Share Price of WMParay99, if you actually read what I wrote you will see I'm not using the price of gold paid for reserves as my true value of WM. I used those numbers to show the high end of what WM would be worth if the ounces of gold were considered reserves at $1800 US/oz gold in 2021. I do make that clear distinction that those numbers are based on reserves and not resources in the third and fourth paragraph of one of my previous posts the you are possibly referring to.
Instead for a more accurate calculation I used the numbers for reserves & resources which is quite a bit lower than reserves measured. That low number is $76.26 US/oz as an average between 2012-2021 when gold prices averaged $1424 US/oz. The high end of that was 2021 when the price of gold paid in acquistions was $171.45 US/oz and gold averaged $1800 US/gold.
Given the current price of gold for 2024 I think we can both agree that the price paid for gold ounces in the ground is climbing or at least the future value of gold resources in a gold mining operation like WM is increasing in value which can make them a very attractive acquisition target. Especially when they sit in a friendly country and jurisdiction for mining gold.
So by using these much lower paid for gold numbers when gold prices were much lower should help offset the fact that we are discussing resources and not reserves. For those not familar with what the difference is between the two; basically reserves are known ounces in the ground, where as resources are a "best guess" of ounces in the ground. But keep in mind a "best guess" in science-related work of mining is not the same as a person taking a random "best guess" at a jar of jelly beans.
When a company completes a PEA the information has a level of precision and detail that is not equivalent to some random guess. The PEA for WM does show that it can be economcially feasible to mine...so far, but more information and drilling is still needed to help bring those premining and mining costs down and ounces in the ground up to a more precise level. However, as the price of gold rises so does the feasiblility of mining WM's ounces of gold in the ground rise too. Spend half a billion to a billion to get $4 - $5 billion back! Not a bad deal over 12 years. But these numbers can get better with further drilling.