Hi mal85Going through your estimatesI see how you handled the...

Hi mal85
Going through your estimates
I see how you handled the convertible notes. I had wondered how to handle that.
For mineable gold the approx. rule seems to be take 60% of measured and indicated resources and for inferred x 40%. Another way of estimating mineable oz?s is to look at the mining program over the life of the mine.
The additional costs ie. further drilling, development costs , other overheads and taxation is something that I have difficulty with in finding for most gold stocks, except to add on a healthy rate per oz.- may be $300/oz. the analysts reports if they are available might give best guidance.
I have just looked at a chart for the price of gold over the last 30 years. Allowing for inflation we have not quite reached the highs of the early 1980?s but are close. I think that the pog is likely to stay high for a number of years yet given the turmoil in world economies and currencies. But to realistically determine the value of the stock over the life of the mines one has to work on what they consider the av. price that would be received over the period, making significant allowances the wild changes that can happen with both the pog and the $A. SA 1150/oz. to $A 1250/oz. might be a reasonable assumption.
Having said all that I also think that ogc is worth at least twice its current market price
I have subscribed to ?gold nerds? which I found to be a valuable asset in selecting and valuing gold stocks. I am holding off investing just yet, waiting for this current rout in the markets to subside.
gk