To get the ball rolling the following bench marking valuation analyses (which can be located on www.contrarian-investor.com/gold-mining-companies.
The benchmark valuation for VKA
Fair Value $2.40 per share The bases for this figure is as follows.
Inferred figures (Flagship mine) 700000 ozs
Gold Price $1500 per oz Mining cost$ 700 per oz (Estimated)
Capital CIL Plant etc $130Mio (Debt/Borrowings)
Further drilling of course will either firm up the gold figure or otherwise! This is just a benchmark,and as such does not answer or anticipate all the things that can go wrong in the mining business. Purely should be seen as a discussion point and not advice to buy the stock.
VKA Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
