Monday, July 25, 2011

Continental Gold ( in situ valuations at Buritica

With decently sourced jungledrum rumours and heresay and whispers and all that jazz saying the Continental Gold ( is about to release a 43-101 resource count for its Buritica project in Colombia of three million ounces of contained gold, your author has been asked by third parties to consider valuing those ounces in situ. Here's a quick calculation table that assumes the following:
  • The rumored 3m oz Au resource count is correct (we'll find out soon enough, but that's the word form Brisbane anyway).
  • Current shares outstanding count of 107.3m
  • Tonight's closing price of CAD$7.53, as well as other prices up and down the scale for comparative purposes
  • U$1 = CAD$0.95
We also back out the current working capital at, assumed at a round U$100m and once all that's cone here's the chart that your humble scribe's XLS spits out:

So with all those assumptions, especially the loose-lipped Australian one about the resource number, we're pricing up those underground ounces at U$250 a pop. Waddya say Ari? That seems expensive to you too?

Pssst! Can you keep a secret? DYODD

PS: Oh yeah, best to disclose in this post: No position in