The gold in the ground is worth a minimum of $25 an oz. There extraction rate is rumored to be around $120 an oz. And once they prove there extraction rate is actually this cheap. The gold in the ground could go as high as $50 an oz. So I'll do a little math here.
Let's say they have (conservative amount)50 million ounces of gold.
Let's say the gold is worth (conservative amount) $30 an oz in the ground.
50,000,000 x 30 = $1,500,000,000
They have 48,022,000 common shares outstanding
They have 10,000,000 convertible preferred shares outstanding
They have 10,000,000 warrants outstanding
Total 68,022,000
So now we know what the company should be approximately worth.
$1,500,000,000 / 68,022,000 = $22.05 a share
Remember these are all conservative numbers based on only 8% of there total claims at Blackhawk. Yes, I said only 8% of there claims, add the other 92% and the total value is phenomenal.
Add the fact that Dames and Moore just issued credibility to there extraction process and you have one hell of a winner that only needs one thing, recognition.
With that being said I can't see $5 bucks a share being too far away.
But as always do your own DD. And don't buy anything based on what I have said.
Robert... |
