That is not how you do it...the inferred resource is just as likely to be higher grade than lower grade.
This part should remain constant...arrive at a value...then a price per share...THEN...a discount for risk, which among other things, includes the risk of less the expected results with the inferred portion.
Need to be careful not to discount...then discount...then discount again...in a sort of exponential approach.
Whilst it may be applicable for fund raisings, etc...this is because they like to front up cash for something already worth more than they are kicking in.
They will be the first teo tell you thei investment is worth a lot more than the numbers they based it on!
lol
For the purpose of shareholders though...we need to look at entity value, none the less in the event of a takeover scenario...here we use the sorts of numbers that represent fair value.
Unless you are a fund, I am not sure why you would use their numbers in valuing YOUR investment?
lol
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
