Golden Hope Mines

Golden Hope Mines Limited is a junior mining company trading on the TSX Venture Exchange under the symbol GNH and on the Pink Sheets in the U.S. under the symbol GOLHF.

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Re: value per Oz.

Golden Hope Mines

over 12 years ago

in response to penderite's message

Pender, the value of the gold in the ground is a function of the company's market cap, and the size of the resource. If a company has a $20million market cap, and 1 million ounces, then each ounce is worth $20. In other words, if you bought $20 worth of stock, your share of the market cap would represent one ounce of gold in the ground.

For actual miners, the calculation is based on reserve ounces, which are resources that have been shown to be economically mineable. For the juniors/explorers, it's usually in terms of resource ounces, which are defined as being likely to be economically mined. If the company has other properties, the calculations are a little more complicated, and full of assumptions.

At today's close, GNH's market cap was $34million. If the resource estimate gives us 500,000 ounces, and the share price stays the same, the in situ gold value would be $68/oz (i.e. $34 million divided by 500,000). I think Osisko has traded as high as $380/oz. Maybe higher.

Lar