Updated Valuation and SWOT - RSG, page-41

The scaling factor is not 1,000 it is $1,000/oz.

So the scaling formula is ($X/oz)/($1,000/oz). The units cancel out making it a dimensionless formula.

Then you are left with EV/production which has dimensions of $/oz/annum.

It is a measure of how many dollars per ounce per year an investor is prepared to pay for one ounce of gold procuction. If for example your mine had only one year of production and the gold price was forecast to be $1,800 per ounce for that year and you got an ASIC adjusted value from Brian's formula of >$1,800/oz you would not buy the stock, if his formula gave you a number <$1,800 and you believed in the gold price forecast you would buy the stock. Stupid simple example to try and explain what the numbers mean. People are just more willing to pay a higher price for production in companies that have a larger scale of production and fundemetally this can only come down to reserves in the end whichever way you want to shake it and bake it. You can't have high levels of production without high levels of reserves. Esh