It is hard to achieve a valuation on an explorer as there is so many factors to take into account.
The starting point for me, is EV/per ounce of resource.
Average EV/per ounce is around $135 for gold explorers but constantly shifting daily.
At a MC of $61 minus ($9 for cash), GML has an EV of $52 million.
$52 million divide by the current resource of 240,000 comes to $216 per ounce which suggest some of the future upgrade in resources has been taken into account as its higher than the average of $135.
Obviously, plenty of factors that aren't represented in an EV/oz valuation like future exploration success, management history, location/appeal for mergers, other projects etc so this should be a potential starter for valuing explorers and one I like to use.
Similar EV gold explorers to ours include our neighbours HRZ, VAN, ENR etc.
Looking forward to the upcoming announcement.
GML Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
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