Canadian Gold Mining Company Average Gold Ore Value Chart

Last Updated With Closing Market Prices and Document Filings from: (as available at TSX closing time).


Seabridge Gold    

Correlation Between Average Ore Value per Tonne and Enterprise Value per Ounce of Gold Equivalent

GoldMinerPulse has been tracking fundamental metrics of the TSX/TSXv gold and silver miners for the past 5 years. The fundamental data tells a story about the gold and silver producers -- the main theme I have observed is that there is a high correlation between the average ore value of a producer's mines and the market assigned enterprise value per ounce of gold equivalent for that producer.

On an intuitive level, the relationship between ore value and enterprise valuation per ounce is expected since the costs to extract, move, crush and process a tonne of ore is, in a first order approximation, independent of the metal content of the rock. More metal in a tonne of rock equals better potential for profits.

A sample of 12 months of data points on a subset of the gold producer majors supports the observation of higher ore value per tonne equals higher enterprise value per ounce of gold equivalent.

Notes