This is the market capitalization - assets + debt Here is a link to a site with a good description
http://goldnerds.com.au/o/content/view/76/79/
what it looks for is the value of a particular enterprise that a company is undertaking rather than the value of the whole company. In other words what is a mine worth to the company rather than all the other things a company may be doing.
With that said the Enterprise Value is guesstimated on a per Oz value and is a lot different to the current per Ounce cost of gold because it factors in production costs and everything else.
It is generally worked out by calculating it for a range of companies at a similar stage of exploration/development so you can see whether something is cheap or expensive with respect to industry peers.
As a rule of thumb
For a discovery that may not be economic at the present time $50 per ounce seems to be the ball park. This is GOR's original resource. 750kOz - but low grade.
For a discovery that has reasonable chance of going into product but still some risk. $100 per ounce.
For a discovery with a high chance of going into production $150 per Oz. This is Central Bore
Once into production above $150 but by then you should have the economics worked out and you can start working out costs per ounce, dividends etc.
To do it you dig out the most recent balance sheet and annual report you can find and workout
Market Cap Assets Debt Gold Ounces
then calculate (Market Cap - Assets + Debt)/(Gold Ounces) to obtain the EV per Ounce
Most explorers have no assets or debt so it becomes Market Cap per ounce.
Last time I calculated it (November 2010) for a range of goldies I came up with values as follows.
CodeNameEV/Oz NAV Navigator $104 DOM Dominion $364 AZM Azumah $152 AMX Ampella $324 GRY Gryphon $237 TRY Troy $178 TAM Tanami $65 IGR Integra $252 CAH Catalpa $175 AZX Auzex $23 FML Focus $70 SLR Sliver Lake $167 SAR Saracen $98 RMS Ramelius $63 KCN Kingsgate $258 IGO Independence $164 PRU Perseus $274 NGF Norton $24 AVO Avoca $165 SBM St Barabara $128 RSG Resolute $78 OGC Oceana $90 NCM Newcrest $248
GOR Price at posting:
38.0¢ Sentiment: Hold Disclosure: Held
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