While Hoopz has no doubt done a great job compiling information from all over the world, to suggest that a project is fully valued and one another undervalued by using only market cap divided by confirmed resource size is extremely basic and not in any way a real-world indication of value. Potential resource expansion, debt, capital expenditure, process, operational expenditure and currency conversion rate are just a few things this chart omits. All of these things should factor into any investment decision as that is where investors can find value where other may not from using such basic valuation metrics.
For example, let's say AGY's current drilling results in an increase to 0.7Mt, 90% of this is 0.63. 562 000 000 / 630 000 = $892/T down from 2545/T.
Now the resource expansion will likely translate into an increase in share price and therefore market cap, which will in turn increase that cost per tonne and AGY may even stay in the same position to the right of the undervalued - fully valued axis but shareholder wealth has increased so obviously it was not 'fully valued' before.
IMO this chart should only be used to compare confirmed resource sizes and nothing more.
AGY Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
