Please tell me if I am wrong, but it looks to me as if CRK only has 41,600 ounces in the reserve category. If you apply the 10% of the gold price (now around $AUD1370) factor for the in ground value for reserves then this gives a value of $5.6 million for those reserves. Dividing that figure by the 140 million shares on issue I get 4.1 cents/share, and not the $1.25 you wrote about. To this one would add the cash backing and perhaps add something for the 4.1 million resource.
See: http://www.carrickgold.com/projects for the size of CRK's reserves/resource which has not been updated as far as I know.
However, that 41,600 ounce reserve could get CRK around $20m in pre-tax profits at a $AUD 1370/ounce and mining costs of $900 if it can get it mined.
Can you clarify where you got you figures for CRK's reserves and resources and what they are?
Thanks in anticipation.
loki
CRK Price at posting:
32.7¢ Sentiment: Hold Disclosure: Held
