Tomato,
I have a few comments on the Yorkton report....if you recall, the "rule of thumb" evaluation method I use to determine if a junior mining resource stock is currently over priced or under valued etc. is:(drill indicated tonnage)x(implied value/tonne)x(% property interest)(10%)divided by(fully diluted # of shares)....
Using Yorkton's possible tonnage(12.5 million tonnes) and possible value per tonne ($Cdn400.00/tonne), and 49.8 million shares fully diluted, my calculation comes out to a fair market value of $Cdn6.80 per share....that is close to their target price of $Cdn 7.00.....
Based on the numbers presented in the last press release, I had calculated about 17 million tonnes for the grid squares with greater than 2 meters average thickness.....assuming another 13 million tonnes is moved into the drill indicated category by late june, we could have 30 million tonnes....using my method and $500.00 Cdn per tonne, this works out to a shot at $20.40 per share.... I happen to believe that it will be closer to 40 million tonnes in the drill indicated category, and if WSP ends up with another 16% interest or say 84%, a discounted value per share, after valuations are released, could be about $33.00 per share....will the market acknowledge the discounted value??
In conclusion, I have to believe that Yorkton's analysts left themselves lots of room for updated and increased price targets:-))
regards,
teevee |
