Updated Valuation and SWOT - RSG, page-43

Your scaling factor has dimensions = $1,000/oz, ie $/oz.

Your scaling formula is dimensionless =( $X/oz)/($1,000/oz) as all units cancel out so you are left with the dimensions from EV/production of $/oz/annum.

I can't make it any clearer, there are no ozs squared in your formula.

Your formula makes sense in terms of the amount the market is prepared to pay forward for one ounce of current annual production.

The absolute value produced by your formula is best though about in relation to the prevailing gold price. So if your formula produces a number like $7,000/oz/annum and the gold price is $1,800/oz the market is paying forward an ounce of production now for 3.9 years. The market is willing to pay more forward on an ounce of production for large scale producers but essentially although your formula is not predicted on reserves (ie just EV, annual production and ASIC) it is essentially a reserve formula because a company generally won't have high levels of production without high levels of reserves, these two variables are dependent variables.Esh