Enterprise Value (EV) of ARL & Comparisons.

I had posted about Enterprise Value on the ARL Chart but it should perhaps have its own thread title to refer to in the future.
I have done calculations on Ardea and its peers for comparison. Calculations can be seen below.
It is important to know and understand what Enterprise Value is all about, so briefly the main reasons why one might be interested in EV's of a company is as follows:

It is apparent that the Enterprise Value of ARL is very low indeed in comparison to its peers, this is a very good thing and is usually considered a more accurate reflection of a company's value compared to Market Cap.
For those who look at Market Caps but do not know too much about Enterprise Value, the following is important to consider.

• The enterprise value of a company shows how much money would be needed to buy that company.
• EV is calculated by adding market capitalization and total debt, then subtracting all cash and cash equivalents.
• Comparative ratios using EV—such as a comparison of EV to earnings before interest and taxes (EBIT)—demonstrate how EV works better than market cap for assessing a company's value.

Why doesn't the market cap properly represent a firm's value? First, it leaves a lot of important factors out, such as a company's debt and its cash reserves. Enterprise value is basically a modification of market cap, as it incorporates debt and cash for determining a company's valuation.

When comparing similar companies, a lower enterprise multiple would be a better value than a company with a higher enterprise multiple. Enterprise value (EV) over EBITDA (earnings before interest, taxes, depreciation, and amortisation) is also a common ratio.

When comparing in-ground values of mineral resources,  a common yardstick is enterprise value per tonne of metal in the ground.

With multi-commodity deposits, you usually use metal equivalent.  For a nickel-cobalt deposit, this would be tonnes of nickel plus tonnes of cobalt multiplied by cobalt price over nickel price being US$47000/US$18363 = 2.56.

MINERAL RESOURCES:

• CLQ at Sunrise have 101Mt at 0.59% Ni and 0.13% Co for 0.59Mt Ni metal and 0.13Mt Co metal or 0.93Mt of Ni eq metal.
• AUZ at Sconi have 116Mt at 0.64% Ni and 0.06% Co for 0.74Mt Ni metal and 0.07Mt Co metal or 0.92Mt of Ni eq metal.
• ARL at KNP as announced today have 826Mt at 0.70% Ni and 0.05% Co for 5.82Mt Ni metal and 0.38Mt Co metal or 6.80Mt of Ni eq metal.

ENTERPRISE VALUE (EV):

• CLQ is 886M shares x $0.285 for $252M mkt cap, less $44M cash for EV of $208M.
• AUZ is 3,961M shares x $0.024 for $95M mkt cap, less $6M cash for EV of $89M.
• ARL is 128M shares x $0.565 for $72M mkt cap, less $11M cash for EV of $61M.

FOR EV $ per tonnes of Ni eq metal:

• CLQ is $208M divide 0.93Mt Ni eq metal for A$286/t.  
• AUZ is $89M divide 0.92Mt Ni eq metal for A$124/t.  
• ARL is $61M divide 6.80Mt Ni eq metal for A$12/t.