Valuing companies by gold in ground for explorers and developers is very variable. Some factors that are important are: inferred or M&I grade potential for production (size of deposit, neighbouring mines) potential for increasing resource I am a bit suspicious of inferred grade, so prefer M&I but initially inferred is all you get
De Grey, now a developer, is now about $150/oz (EV per resource oz) but Kalamazoo only about $10/oz. So there's a lot of judgement required to value an exploration company by resource in the ground.
Looking at OAU we have high grade, good potential for production, maybe $100/oz for inferred resource would not be far off, but $150 plus for M&I.
OAU Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
