Just having a look at this one and am getting very confused with...

Just having a look at this one and am getting very confused with the valuation being put up by the various analysts on the GDO website.

Problem is that I am getting a valuation of about 1.97 based on an EV of 150 per Oz measured, 100 per Oz indicated and 50 per Oz inferred.

Now if this was an explorer that would be about right. I seem to be getting to within reasonable ball parks - although perhaps a bit conservative with other stocks.

The valuation of GDO used by the analysts is a NAV (net asset value) calculation which is probably more appropriate for a producer. So for example the Hartleys note GDO20110228 puts it at 0.64

What I don't get is why the discrepancy? Doesn't the in ground resource have value? I would think that they could sell off some of their resources to another company at some EV per ounce amount which should be reflected in the share price.

Now it is silly wishing that the market should include the reserves and resources if the market doesn't. The market after all is always right. But does anyone understand why valuations don't reflect the reserve and resource base?