where ovr stands today, page-13

Rhodes2Ritches,
i primarily use three different figures in my due diligence practices. Of course, i have other macro and micro economic indicators and various other issues but in terms of calculations they are primarily the NPV, IRR, EV/OZ and MINE VALUE.

MINE VALUE gives one the in-situ value and is more of a comparison towards its peers. It comes in as a handy reference when they are in Phase 2 and 3 of the discovery cycle.

EV/OZ is used more to give a quick estimate of its resources in relation to the prevailing spot prices.

NPV is the main indicator of reference if the firm has done preliminary scoping studies and pre-feasibility studies. As such, OVR is not a stage 1 junior but rather a pre-development firm and should be rated as such. This should entail that they should be at a minimum of 25% - 40% of their NPV. That's a fair value. At this stage, the idea is to get a ballpark estimate of their value to find a price point to enter.

IRR is one indicator that is primarily used by mid-tiers and majors in assessing a junior's projects for takeover. Anything above 15% is feasible but have anything higher then 25% and we will have a number of overseas investors watching closely.

Always be conservative in your assessments.