4 million ounces of gold resource estimate. times 1,368.80 an ounce (close of gold today) is 5.473 BILLION ! so shouldnt RBY market Cap be close to 5.473 billion? That would be a share price of $25.69 based on 213 million shares outstanding.
am I missing something here ?? thanks
You assume that there is no cost to mining and that 100% of the gold is recovered without cost.
There are milling costs, transportation costs, labor costs, insurance costs, de-watering costs, electricity, equipment costs, taxes, and a world of other expenses.
Costs are going to run 4 to 5 hundred dollars per ounce.
Yes, you're right, but that will leave BILLIONS in profits to use to continue developing existing holdings and or pay out to share holders.
Rubicon had a great day yesterday and I believe this is the first of many.
Hopefully, we will have an operational mine in two years.
Jedd, the associated costs result in the actual value of an oz of gold being closer to $330ish for RBY. If you do the math, this means that 4 mil oz alone would result in a valuation in the $6 range. However, this doesn't include the additional prospect of 8-9 mil more oz, and their additional properties. In other words, todays closing price is what the stock would be worth if they literally only had 4 mil oz. Clearly there is at least 2-3 times this, and this is only F2.
My numbers are not exact, but you get the idea.
I honestly don't know, but don't they have to take into account the fact that there 'could' be less gold than estimated and that it could be expensive to remove?
Either way, I am excited!
yeah the costs are several hundred dollars an ounce to mine with all the equiptment, permits, salaries and everything. I know some of the other posters have pretty acurate estimates on costs of mining from other projects.