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North American Gem Inc V.NAG



TSXV:NAG - Post by User

Bullboard Posts
Post by stocktaon Mar 31, 2005 1:24am
297 Views
Post# 8836565

NAG Back of Envelope Valuation

NAG Back of Envelope ValuationHere are some numbers in terms of preliminary valuations for NAG to consider. Lets take the resource estimate from the 1990's for the Smithers property and factor it down by 25% to say 38M tonnes. Then lets say the value for a tonne of rock here is about $20 based on the company's analysis and that is on the low end. We would get 38M x $20 = $760M gross company value for the Smithers property. Then lets use a discount factor of 5% which is low for insitu deposits and we get $760M x 5% = $38M With 22M shares outstanding, the potential value of NAG would be around $38M/$22M or about $1.75 per share. And I used conservative estimates. I will definitely be buying more tomorrow. This looks like it could be the next runner, just like TYS was a few months ago.
Bullboard Posts