GoldMinerPulse: Gold Mining and Silver Mining Company Valuations

Featured Mining Companies

Rio Alto Mining Limited (RIO.TO) | Visit | Valuation Blog
- Rio Alto Mining is a Canadian based resource company operating the La Arena gold / copper project, located in north central Peru. Management expects that the La Arena Gold Mine will produce 150,000 to 160,000 of gold at a total cash cost of $600 to $650 per ounce for the year ended December, 2012.
  May 14, 2012, Rio Alto Reports Earnings of $0.19 per Share for Q1 2012 more.
  April 27, 2012, Annual General and Special Meeting of Shareholders to be held on May 10, 2012 more.

Friday's News Highlights

Select Friday's news headlines from the 1,523 mining stocks (producers, developers, explorers, base metal producers plus a few of the capital pool companies) GoldMinerPulse tracks:

EurOmax Resources Ltd. (EOX.V) | Visit
- 09:10am EDT EurOmax Files NI43-101 Technical Report for the Updated Mineral Resource Estimate on its Ilovitza Cu-Au Porphyry Project [Marketwire more]
Golden Minerals Company (AUM.TO) | Visit
- 09:48am EDT Golden Minerals Announces High Grade Resource Estimate for Velardena Property in Durango, Mexico [Marketwire more]

View all of Friday's drilling and resource news headlines at Today's Drilling News. Click on All Today's News to view all of today's news headlines for the 1,523 gold mining and silver mining companies from around the world GoldMinerPulse is tracking.

Gold Mining Stock Valuation

A general observation about the nature of mining, which typically involves extracting, lifting, transporting, milling and processing tonnes of ore, suggests that mining costs are determined, to a first order approximation, by the total number of tonnes to be handled and not by the metal content of each tonne. That is, the costs of extracting, lifting, transporting, milling and processing for a tonne of ore does not change whether the tonne contains a small amount of metal (low grade ore) or a large amount of metal (high grade ore). Therefore, high grade ore, or ore that has a higher metal value per tonne, is necessarily more valuable. High grade deposits have more robust economics, are less sensitive to changes in resource prices and typically may be developed with lower CapEx spending. Of course, dilution factors (not all ore can be mined) and metallurgical factors (not all metal in the ore can be extracted) do come into play and cause variances between deposits.

For more on valuation, please see Gold Explorer-Producer Valuation.

Gold List

Mining companies are included in the GoldMinerPulse Gold List if more than 25% of the in-situ metal value, based on recent metal spot market prices, is from in-situ gold.

Silver List

Mining companies are included in the GoldMinerPulse Silver List if more than 25% of the in-situ metal value, based on recent metal spot market prices, is from in-situ silver.

New, March 1, 2012

The GoldMinerPulse eBook Compendium of Gold and Silver Mining Companies Trading on the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXv) is now available. More details here.