TSX:SGR.UN - Post by User
Post by
agmetalheadon Jan 26, 2005 11:09pm
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Post# 8494742
My take on valuation of SGR...
My take on valuation of SGR...Outstanding shares of SGR.V. 37 million @ $0.43
Market Cap $15,910,000
Gold reserves ounces audited 550,000
Market Cap per ounce $28.92
($15.9 M / 565 K = $28.92 per share)
Metal in ground for every $1 worth of stock (2.4 shares)
$28.92 = 2.1 grams of gold per share.
(550k ounces * $420 = $231m / $16.Mkt Cp = $14.51) Each share is backed by $14.51 worth of metal in ground which = approx 32.72 shares
Industry standard for evaluating the market value of a mining / resource company…
Resource play, gold reserves in ground no mining infrastructure in place. Watch SJD and see what I mean…
SGR has 550K ounces of gold reserves @ $100.00 PO = $55m/$16.MktCap = $3.45 Share straight buyout.
Mine play with proven gold and mining infrastructure in place ready to fire up after grease job and oil change just like SGR.
550K ounces of gold reserves @ $200.00 PO = $110M / $16. MktCap = $6.91 per Share…Not to shabby no matter how you dilute it. I say this is what we are worth today without taking irrational exuberance into consideration.
At $0.43 Canadian per share no matter how you look at it it’s safe to say this stock is woefully undervalued. Oh happy day's. Bring on the merger and let’s get trading. I think we’re going to need every diluted share out there just to satisfy this hungry market for gold and its proxy Rice Lake Gold Corp.
We don't mine gold we mine money.
A wise man once said the value of a share of stock is only worth what the public is willing to pay for it and then some.
Clobber thanks for the report on your findings from the show. It only confirms what I have believed since last June.
Rice Lake Gold Corp know known as GC/SGR is a safe bet.