GNCC Capital Inc (GNCP)

[bizops12]

From a purely accounting standpoint this is the book value. However the value of the mine holdings are generally "priced" at the land purchase price (accountants like hard numbers). As the company does assessments and further explorations those prices are subject to change. Also as gold prices fluctuate those prices are subject to change. That is why I said and still hold to the statement that it is difficult to accurately establish a TRUE book value. This is not a retail or manufacturing business. The value of the gold and other minerals the company holds are hard assets but will never be directly reflected in the basic accounting books because an accounting firm is not going to use a "moving number" or a valuation based on opinion (even if scientifically based). They will always use the conservative market assessment (generally the sales price) of the land.

This does not automatically mean the land will sell for more. It could actually sell for less meaning book value is overstated. We can't really know unless the company decides to liquidate some of these assets.