I took GG as the basis - there may be other stocks out there that are a better example, because GG is also mining a bunch of other materials that Gold. In addition, GG does not carry the political risk of Venezuela. I ran the KRY shareprice at a 20% Discount for these two reasons.
In the excercise - I included the dilution - up to 500,000,000 shares outstanding. I also ran a sensitivity on the Proven & Probable - when the new report comes out based on the 'new' price of Gold - it will have a huge impact on the valuation. Based on the current 17-18 million - KRY's 1/3 is 6 million - this should be the floor from a reserves standoint.
Even with the dilution - KRY still has HUGE potential.
BTW - if folks know of a 'producing' company that is more representative of KRY - mainly one that is mining exclusively Gold - it may be better to use that share price and that reserve basis as the example.
| GG |
|
|
|
|
|
|
|
| Price/Share |
Shares Outstanding |
Proven & Probable |
$ / Ounce |
| 43.27 |
733,000,000 |
48,800,000 |
649.9367 |
| KRY |
|
|
|
| Price / Share |
Shares Outstanding |
Proven & Probable |
20% Discount |
| $7.80 |
500,000,000 |
6,000,000 |
$6.24 |
| $9.10 |
500,000,000 |
7,000,000 |
$7.28 |
| $10.40 |
500,000,000 |
8,000,000 |
$8.32 |
| $11.70 |
500,000,000 |
9,000,000 |
$9.36 |
| $13.00 |
500,000,000 |
10,000,000 |
$10.40 |
