New World Gold Corporation (NWGC)

[Computerbux]

NWGC COMPLETE Valuation and DD (with links) Updated 1/12/15

These values are based on current DD – Any change in values via PR will change this valuation.

MOST RECENT REVENUES AND PROFITS REPORTED

2014 estimates have been reported to be in excess of $8.5M in revenues for 2014, and more than $2.5M in PROFITS, and more than $13M in assets. Growth has continued each quarter and each financial year.

SHARE STRUCTURE

Current A/S reported by FL SOS is 1.55B shares. Last reported O/S as of 9/30/14 is 775.5M shares. The current O/S is very reasonable by OTC standards, and all increases in O/S have resulted from debt over two years ago during startup. The CEO says that the company is not issuing any shares to pay for operations, as NWGC is in production and very profitable. The CEO also says most of the debt listed is inter-company, not to note holders.

http://www.otcmarkets.com/stock/NWGC/profile

http://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&searchNameOrder=NEWWORLDGOLD%20P080000448031&aggregateId=domp-p08000044803-92c1f9d2-a181-4592-b0bf-bad7c6b57a7b&searchTerm=New%20World%20Gold&listNameOrder=NEWWORLDGOLD%20P080000448031

AMOUNT OF PROVEN GOLD, HEAD GRADE, and OZ PER TON

Proven gold (meaning actual mining results have confirmed estimates) are in excess of 800,000oz!!! Information can be found on the conference call which can be listened to here:

https://www.youtube.com/user/computerbux

This has been confirmed through both in-house studies, independent lab analysis, and private 43-101 through CURRENT, SEC APPROVED, geologist Duncan Bain.

http://www.mining-technology.com/contractors/project/duncanbainconsulting/

In December 2014, a new shaft with 27 new veins was opened.

http://www.otcmarkets.com/stock/NWGC/news/New-World-Gold-Corporation-To-Begin-Production-on-New-Veins?id=92304&b=y


WEBSITE

The current website dated 2012, is being overhauled and completely redesigned; it should be out soon. The data on the current website is outdated, but does serve a good purpose of showing history, pictures and videos of the gold process from mining, to crushing, to milling, to gold extraction.

http://www.newworldgoldcorp.com

COMPANIA MINERA, PL SA

NWGC owns 82% of our subsidiary AGCZ, which according to the PRs and Financials, owns 100% of Compania Minera, PL S.A. aka COMINPLSA.

This is the company which has had a long history of mining and milling in the area of Zaruma, Ecuador.

Their contact information, and various filings with the government can be found here:

http://supercias.gob.ec

http://www.fedexpor.com/directorio/empresas-exportadoras/item/compania-minera-pl-sa-cominplsa

Their mining permit with the Ecuador Government can be found here:

http://www.aduana.gob.ec/archivos/Boletines/2013/senae-dsg-2012-8397%20arcom_agencia_de_regulacion_y_control_minero.pdf

GOLD AND COPPER EXPORTS

It was recently PR'd by the sister company AGCZ, that the international export of gold produced by the company has started in December, 2014.

http://www.otcmarkets.com/stock/AGCZ/news/Andes-Gold-Corporation-To-Begin-Shipping-Gold-Internationally?id=92074&b=y

Export data, including shipping manifests and bills of lading can be found here:

http://www.sicex.com/importers-exporters-products/sisduan/EN/409-2-1-0791735432001/Ecuador/Exports/COMPANIA%20MINERA%20PL%20S%20A%20COMINPLSA/

One of the shipping companies can be found here:

http://transbordoscallao.blogspot.com/2014/08/25-julio-2014.html#uds-search-results

COMPETITION

70% of our revenues come by the way of milling for small, independent miners. We own a total of 5 mills, with three new mills just announced. Only 30% of our revenues come from mining.

http://www.otcmarkets.com/stock/AGCZ/news/Andes-Gold-Corporation-Expands-Operation?id=94589&b=y

The company has been verified multiple times by the largest competitor in the area, dynasty mining. Quoting them, "NWGC has their concessions in Zaruma, and we have ours"

http://dynastymining.com/

We have more revenues and more profits, than 99% OF ALL GOLD COMPANIES IN THE OTC!!!

EARNINGS PER SHARE

Here is the math:

$2.5M in profits is the most recent data PR'd.

$2.5M / 775 O/S = $.0032 Earnings per share

Keep in mind that Q4 numbers will likely exceed this amount.

http://www.otcmarkets.com/stock/NWGC/news/New-World-Gold-Corporation-to-Open-Additional-Mill-in-Ecuador?id=82184&b=y

http://ih.advfn.com/p.php?pid=nmona&article=63507010

http://ih.advfn.com/p.php?pid=nmona&article=62854204

We also know they are processing ore for about 12 mines now.

http://www.otcmarkets.com/stock/NWGC/news/New-World-Gold-Increases-the-Number-of-Independent-Miners-That-It-Processes-Ore-for?id=82364&b=y

Currently, we know from the company conference call PROVEN reserves of 800,000oz!!! and 1,200,000 in probable reserves. For the sake of this DD, we will use PROVEN only.

The average P/E ratio of mining companies is around 20, which accounts for the future return of revenues. That means just on profits alone, e should be trading around $.064 as a base value. The primary criticism of using this method in the case for NWGC is the fact that 70% of our revenues are milling; we have over $1B in our own gold in PROVEN reserves which are not counted in this method. Nor does this method of value include our assets, which are more than $13M.

Assets, revenues, and production costs can lead to another method of valuation, and the results yield around $.22 per share.

The most current gold price, as of 01/12/2015 is $1205 per oz.

http://goldprice.org/

Our cost of mining according to the CC is $700 per oz.

70% of NWGC revenues currently come from milling. But they do still have their own mine as well.

So what we have here is 800,000oz of proven gold, and if you multiply that by today’s gold price of $1,144 per oz, you get

800,000 x $1205 = $964,000,000 Dollars of Proven Gold

Take the same $800,000oz and multiply that by the $700 per oz average cost

800,000oz x $700 = $560,000,000 in cost to mine the gold

Most gold companies manage to recover 80% of the proven gold. Let's use that conservative value.

800,000oz x 80% = 640,000oz proven and recoverable

640,000 x $1205 = $771,200,000 Dollars of Proven Gold in our mines

640,000oz x $700 = $448,000,000 in cost to mine the gold

Now we take the REALISTIC revenues and subtract the costs:

$771,200,000 - $448,000,000 = $323,200,000 PROFITS FROM GOLD

Now let’s take a look at what all this means for valuation. Let's assume it takes 10 years to recover all the gold from our mines. We will use this for milling revenues and assume zero new growth in operations and assets.

$323,200,000 long term gold profits +
$5,950,000 annual milling revenues (70% total 2014 revs) (x 10 years) +
$13,000,000 equipment assets
_________________________________________________________________
$395,700,000 Estimated worth of all profits
/ 775,000,000 outstanding shares

_________________________________________________________________
$.51 per share - (most accurate value)

Therefore NWGC true value, based on all information given, is $.064 - $.51 per share.