example: valuing gold companies

Hi All,

There is a quick Valuation Analysis of the Gold company called Red 5 using some standardised metrics. The analysis is found at:

http://ozstock.blogspot.com.au/2012/05/analysis-red-red-5.html

Summary: Given a score of 0.9 in the range between 0.0 to 2.0, RED is not a favourable stock at the moment. This fundamental approach is also backed up by a Technical Analysis of looking at the recent price drop of RED.


This valuation is based on the method of using 4 metrics such as Mine Life, estimated resources, time to production and cash flow generation. The details of this valuation method is found at:

http://ozstock.blogspot.com.au/2012/05/valuation-of-gold-mining-companies.html