Hello Vincent;
Good calculations, but as I have mentioned before, we are trying to place a valuation on what I will refer to as a moving target, we know there is 11.5 million/oz's/au in the Las Cristinas, but when PDG was going for financing, they were inferring much more.
It has also been leaked to environmental groups in Venezuela, that the resource is upwards to the 25 million/oz's/au, so then we have an entirely different equation to work with, and this is still not including other projects that KRY has ongoing and will also expand on, thus the moving target. There is a post somewhere that I have read and I will try to get it here, and it comes from PDG personnel, and it states that it is the norm for a company to end up finding at least 65% more than the original resource calculations, so if we have 11.5 million on PDG'word now and then add in the 65%, it gives us a resource of 18.97 million/oz/au, now this comes from PDG?
So if you guys really want to place value, then I suggest using higher figures, because this is what the market is going to see??
And it is the primary reason as to why at this point it is useless to try to place a value on this project, and aside from that the value of the project will change with the POG.I will let the market determine what the value will be, either up or down??, my bet is up!!
Here is also a better way to try to evaluate this project and others as well. People are using a figure of $25-50/oz, what they should be doing is trying to figure out what the average POG will be over the next seven years, and then begin to calculate from there, this I have been told is how the gold producers do their calculations. Not sure exactly as to how they do it, will try to find out?
With regards,Frank |
