how to value a junior gold, page-195

it can't only be about production.

There's some "emerging" producers that are producing 100,000 oz/annum or 200,000 oz/annum plus and making big multi-million dollar losses.

They are giving their resources away - I can't value companies like that.

In fact can it get any worse than that ?

Are these emerging or submerging producers ?

Some also have their resource spread over 5 widespread deposits .. in various countries and in remote areas.

One or 2 of these 5 mines may make productive mines .. 3 or more might not.

so there goes 3/5ths of the resource... so a company with a 5 mill resource maybe we should consider that only the 2 mill oz resource as being potentially productive.

Anyway assuming that all 5 deposits will prove productive..
If you consider you'll need to spend $250 mill plus for cap-ex for each of these 5 deposits .. (CIL plants and circuits aren't cheap) .. plus another $50 mill each on accommodation and to develop each mine .. there's a total of $1.5 bill of cap-ex bill looming to gobble up future hoped for profits.

just my thoughts anyway.