Life begins at 40

Ok, imagine a virtual IPO for a company called Carnaby Resources (CNB).

IPO offering was 40c giving it a market cap of around $38 mill.

Why participate in the IPO?
Well, they've got ~$7,000,000 cash or equivalent with money in the bank and coin from a tailings sale coming.
They have ~$20,000,000 worth of gold sitting in the ground at Tick Hill.

Ok great, but any near term activity?

Well, they've also identified a very specific target at the quality grade gold mine at Tick Hill in safe Mt Isa, which they will drill in a couple of months.
They've got a bunch of land in the safe Pilbara where the next door neighbours (De Grey) have found not one, not two, but three monstrous loads of gold.
They start a diamond drill program just over the fence from them, in 2 months.
Oh yeah, and they start production for that ~$20,000,000 worth of gold in a couple of months too. Either that or they'll probably sell it.

Awesome. So what is the listing price?

Well, as they say: "Life begins at 40"