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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: tyc:> who wrote (63105)1/27/2009 12:31:30 PM
From: Claude Cormier  Read Replies (2) of 78416
 
- I presume this indicates how much money has been actually spent on each property.

Exact and therefore is irrelevant.

-but it raises some doubt in my mind as to whether the market price of DMM is "undervalued".

It should not if you understand the company assets and try to extrapolate a little and forecast future cash flows.

DMM potential is far superior to LSG on all counts, despite the fact that both companies have the same book value per share. More relevant is the absolute book value which is much lower for DMM dspite much higher potential in terms of futre cash flows.

Of course, if we take into account the potential political risk, which although greatly diminished with the passing of the mining law, will still remain long term, then we are allowed to have some down some doubt.
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