I get where you're coming from. RCKS covers another one of my...

I get where you're coming from. RCKS covers another one of my stocks - their coverage is pretty good considering its all on the public domain. Really cool concept - not a broker, but leads financings and markets stocks. Companies are the clients rather than investors.

On the report - CHN's current EV of $17m seems to be covered by the potential of current projects rather than any JORC or Canadian 43-101 resource. The valuations which RCKS use are comparative on EV/oz - but CHN has no ounces yet.

Say CHN can get up a resource of 750,000oz at Au-equivalence - that gives a valuation of USD$18/oz using the current EV. While that's below RCKS's average, it's a fairly conservative-sized resource estimate given CHN is chasing something bigger. The point of this exercise is to show that maybe CHN is currently at a fair valuation.

However, if CHN makes a discovery, you can bet the share price will rerate very quickly. As the article says, CHN presents a very low-cost option on a major discovery since the downside is comparatively low (~40%) given the cash backing. And that downside scenario would mean that both projects are dusters! That's not even mentioning the project generative opportunities in WA.