Blogging Canadian Gold Mining and Silver Mining Stocks



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Recent GoldMinerPulse Blogs

GoldMinerPulse Version 2.0 Valuation Blogs

The version 1.0 valuation blogs rely heavily on market capitalization per ounce of gold (or silver) equivalent. Since publishing these, we have introduced ore value charts which open a new dimension to valuation.

Silver mining company market capitalization versus ore value per tonne, 2010-Mar-10

Gold mining company market capitalization versus ore value per tonne, 2010-Mar-10

New blogs exploiting the ore value view on comparing and valuing companies are coming soon. In the mean time, our original version 1.0 blogs are still available.

The motivation for switching away from a Market Capitalization per ounce, or equivalently Metal Value Leverage, is best summarized by a quote on the price of gold, attributed to Peter Marrone, CEO of Yamana Gold (YRI):
Cost is a big factor -- I am a big believer that not all gold ounces are created equally.

Since the cost of moving a tonne of ore is independent of the value of the contained metals, looking at ore value in conjunction with market capitalization per ounce of equivalent is going to provide more relevant factors with which to compare and contrast mining companies.

Version 1.0 Valuation blogs

With the Pan American Silver acquisition of Aquiline Resources, our version 1.0 blogs are no longer valid as some of the Aquiline Resources silver was hedged and there are potential permitting issues which may limit mining of some deposits. Please see the original Aquiline Resources Metal Valuation Report for more details on hedges and potential restrictions.

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