Hi Hawkes and JP. What I'm talking about is saying that DEG would be worth15 cents per share today if it had a resource valuation $23 per ounce; the same valuation as the current resource value for KAI of AUD23 per ounce. So DEG would be worth $23 per oz x 10,000,000 oz / 1,561,170,000 shares = 15 cents per share. DEG have got met work, engineering design, etc underway, so their company is more valuable than KAI - but 10 times valuable on a $ per ounce of resource basis?
So just to make a fairer and more valid comparison, we can go back to February 2020 and see where DEG was then. Similar location, people running around saying major gold deposits in that area were a fantasy, gold nuggets were a crock, and Hemi was a glint in the eye with some good drill hole results. Here's some information from a DEG
corporate presentation from back then:
Back in February 2020, DEG was had a JORC resource estimate of 1.7 million oz, MC of $161 M, $7.9 M in the bank, and a share price around 16 cents.
DEG's resource value was $161,000,000 / 1,700,000 oz = $96 per ounce.
KAI currently doesn't have the cash in the bank, and we don't have the hope of hemi, but today we're down at $23 per ounce. Even if we said that KAI was half of DEG's resource valuation at $50 per ounce, we'd be talking about a share price in the order of 4 cents today. At around $100 per ounce, KAI's share price would be around 8 cents.
I think we have nice pooch, but GJ might be right, it has some fleas that might need to be shaken off. In my opinion, there needs to be circuit breaker thrown in to bring this onto the market's radar. If we hit lithium in June / July, it might just be the tonic. Either that, or break out the Bravecto.
Or maybe tomorrow the market might wake up and notice.
500,000 oz Au addition to the resource estimate and a mark down of 10% in the same day - sheesh.
Which ever way this is cut and diced, we appear to be way undervalued.
All just my opinions.
GLTAH.
(20min delay)