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821 Posts.
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09/10/09
16:33
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Sorry to re-post...I thought this need its own thread.
I've been having a look at CCU and their Valuation Metrics on the Wonawinta silver resource and have used the same method to value MMN version 2.0.
Bear in mind CCU dont have a plant developed like MMN plus MMN's resource is 50m JORC.
Using CCU Valuation Metrics:
EV/Resource ounce is commonly used to value Australian gold companies-can vary from <$50 to >$350 depending on "quality" of ounces in the ground.
--$120 / oz is considered "average" EV/resource valuation.
--Current Gold/Silver price ratio is 60:1
--Therefore, $2/oz could be considered an "average" EV/resource valuation
--MMN have 50m oz x $2 / oz
--Implied EV = $100 m
--Shares on issue = 600m
--IMPLIED VALUE PER SHARE = 16c
Someone tell me where im going wrong?
My broker has recommended I take more upon relisting...saying that these will come on at 2 - 4 cents and head north from there.
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