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The formulae used to determine MCpOzAuEq or market cap set out in detail at Calculating Mining Company Valuation are sensitive to changes in the estimated fully diluted share count, the resource and reserve counts and to the company's closing stock price. An error in any of these inputs will distort the MCpOzAuEq calcuation.
Mergers, acquisitions and property sales are typically absorbed by the market as soon as the news becomes known. However, updates to the fully diluted share counts and resource counts tend to follow the actual closing of a merger, acquisition or sale event. As a result, there may be a significant discontinuity in the MCpOzAuEq periodically. Also, unless a company subscribes for priority updates (target update time of 1 business day after company news release), updates may lag significant events such as NI43-101 resource estimate updates but several weeks. When priority updates are enabled for a company, its name is shown in a bold font.
Also, please see Gold List Change History for dates for when ongoing updates to company resource, reserve and fully diluted share counts were applied. Not all changes are reflected in the valuation exceptions lists below.
Noted MCpOzAuEq valuation exceptions:
Kinross: Reserve and resource counts updated February 28, 2011 to reflect the December 31, 2010 numbers. Fully diluted share counts were also updated. The February 25, 2011 market capitalization per ounce of gold equivalent decreased from US$187.30 to US$186.76.
Goldcorp: Reserve and resource counts updated February 28, 2011 to reflect the numbers released February 9, 2011. Fully diluted share counts were also updated. The February 25, 2011 market capitalization per ounce of gold equivalent increased from US$188.76 to US$172.85.
Trade Winds Ventures: The fully diluted share count for Trade Winds was wrong for several months. December 30, 2010 jump in valuation was due to the correction in fully diluted share counts.
Rubicon Minerals: The current gold resource counts shown are based on historic NI43-101 reports for the property. The Market Capitalization per Ounce of Gold Equivalent (MCpOzAuEq) shown is not indicative of the F2 Gold system Rubicon discovered in 2008. The MCpOzAuEq does however provide a basis for comparing the changes in Rubicon valuation over the past year versus changes in the price of gold. Rubicon Minerals is expected to issue the first NI43-101 report on the F2 Gold system in November 2010 which I expect will yield a resource counts suitable for comparison with other gold companies on the list.
Gammon Gold, November 5, 2010: Gammon Gold update assumes the acquisition of Capital Gold will close as announced (MCpOzAuEq increased to $114 from $112 when the update was applied).
Fronteer Gold, November 5, 2010: The Fronteer Gold fully diluted share counts and resource counts were updated to reflect the acquisition of AuEx Ventures announced Aug. 30th and which completed Nov. 2nd. (MCpOzAuEq increased to $139 from $118 when the update was applied.)
Investors relying on GoldMinerPulse metrics are advised that updates are maintained on a best effort basis. If there's any question, refer to the date of a company's most recent update, which is always recorded in its Metal Valuation Report (click R in the Related Links column). From time to time, volatility of market reaction to certain events, surprise regulatory changes and unpredictable delays in our updates may also distort GoldMinerPulse metrics, in some cases, significantly. In our earnest effort to maintain the integrity of our numbers, GoldMinerPulse is pleased to correct any inaccuracies. Please submit error reports by e-mail to dennis@goldminerpulse.com. All submissions will receive a reply!