Post by
Bywrong on Feb 11, 2018 3:06pm
what is gold worth in the ground ?
Pretty good article here
https://www.goldgeologist.com/mercenary_musings/musing-150601-The-Real-Value-of-Gold-in-the-Ground.pdf
The gold deposit was ultimately acquired by a mid-tier mining company for a total price of $370 million, or $300 million net of the $70 million cash on hand. During its lifespan, the junior had raised $320 million, giving a total return of 13.5%. It had spent $250 million to acquire, explore, and engineer the project and sell-out to a miner. In analyzing its history, the insiders and other early investors acquired 43% of the company at an average price of $0.46 per share. If they had held onto all of their shares until the takeover occurred, returns on investment would have been over 700%. Investment bankers and brokers would have collected fees in cash and broker warrants on the $300 million worth of private placements and public offerings; corporate finance fees would also have been paid on the $370 million takeover. Assuming industry average rates for these fees, investment bankers and brokers would have made over $35 million and likely closer to $50 million during the company’s life. The investors who bought in for $300 million or 94% of the total money raised and acquired 57% of the shares at an average price of $5.31 did not fare well at all. On average, they lost over 30% of their investment. And pity the poor souls who were part of that $12.80 private placement on a gold deposit whose real in-the -ground value was never worth more than its acquisition price of $3.70 per share.
Since there will never be a takeover at BGM, should discount the $45/oz by ?$ Using $30/oz in the ground ( remember a recent pick by Byron King was at $18/oz...and it was a producer)....is over 9 M OZ once $278,000,000/30 math is done.
So who makes $$ here? Banksters of course, the very early shareholders. Just look at poor ol frozen nutz...already down 36% from his $1 purchase
JMHO
Comment by
chillyballs on Feb 11, 2018 9:23pm
My my my... using the absolute lowest $ for insitu... and then discounting it... whatever... Riddle me this Buydong.... what is the gold worth out of the ground... could you do the analysis on that for us!!!
Comment by
MiningIng on Feb 11, 2018 11:05pm
Bywrong let me know where you live I will send you a new brain! Seem's like your's isn't working anymore....
Comment by
Bywrong on Feb 13, 2018 7:08pm
MiningIng thanks for the offer, I have more than enough brainpower to calculate $$ in the ground. For projects that I am not aware of...I pay others to do the crunching. Perhaps some of your surplus brain offer...find out frozen nutz address...anyone that bot shares at $1 and have a 33% haircut....and are very happy about that...certainly could use some of your freebie. JMHO