Let's assume say that the measured and indicated are about right, and say 1/3 of the inferred is reasonably reliable That gives a resource of about, say, 2,000.000 ounces. At current gold price of about $2,234, let;s say $2,000 will be achievable.
Value of reserves, say 2,000 x 2,000,000 = $4,000,000,000., $4 billion say. Tam share is 60% free carried. ie. $2.4 billion.
About 1.25 billion shares in the company
So, 2,4 divided by 1,25 = 1.92
ie. by this calculation, a share is wirth about $1.90 from a realisation of the resource, probably conservatively, if it all works out in the end.. Of course allowances for risk of all kinds of unforeseen possible problems. Factor in about 50% because of a long time scale and possible risks, say then about $1. That's over 10 times the current value.
What are opinions on this? Given the large upside using ths kind of calculation rating TAM as worth holding out for $1/share. What is the error, if any, and why only $0.08 sp?
WIll be pleased to hear why this is wrong or a reasonable guess..
