On one of Carrick Gold presentation, they drew a chart to compare the ratio of Market Cap/ Resource oz of a few emerging gold producers (some could be producing by now). It give a rough guide how to value an emerging gold producer and we can compare if CJO is too pricey presently. I presume the higher ratio could be due to nearer production date, among other factors and the resource oz are based on the in-ground gold and not the recoverable. These are the ratios:- Regis--301 Integra--226 Troy--192 Catalpa--174
Other companies have lower ratio but they are much further from production and are still doing their scoping studies. Let's work out CJO ratio. Market cap = 630m shares x 26c = $164m In grd gold equiv. = 1.9m oz MC/ Resource oz = 86
Many other factors were not considered in these ratios but they give a good rough guide. Maybe some companies have higher ratios because they have come into the big funds radar. I am happy to hang on to my shares to see the ratio match other comparative emerging gold producers. CJO ratio does not even consider the other assets in its portfolio.
CJO Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
