Ann: Falcon Major new gold discovery at Hemi, page-241

Fair Value for DEG? Posters here have speculated as to whether DEG is overvalued at the present MC of $1.5 billion or not. Clearly attempting to calculate JORC figures without even knowing the extent of the ore bodies which are all still open in all directions would be a waste of time and resources. To estimate the number of ounces without extensive infill drilling is just guessing but the results available to date at Hemi are very promising. However there is still ways where we can come to a rough figure, good enough for our purposes.
The average price per ounce that the majors have been paying for replacement ounces last year was $175 US per ounce, so using that a bench mark we should be able to put a figure to DEG's value. DEG already has 2+ million ounces on the books not considering Hemi at all and dividing the MC (converted to USD) of $1.1 billion by $175 fair value would require a M & I deposit of 6.3 million ounces in total and 4.3 mOz for Hemi. As Hemi still has not been fully defined and can only get bigger and allowing a premium for nearby infrastructure and low political risk I would postulate that the present share price is quite justifiable and may even be cheap.