BB's Stock Haven

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How To Value DGRI

Gold exploration companies with 43-101 reports typically obtain market caps based on the proven and probable ounces of gold in the ground.

$30-40/oz on the pinksheets
$75-100/oz on the TSX
$200/oz on the AMEX
$300/oz+ on the NYSE

The $/oz goes up as the credibility of the stock exchange rises.

For SA I, if we get 1M proven and probable ounces look for a $30-40M market cap. If we get 2M proven and probable ounces look for $60-80M market cap..etc. The whisper is we may come in at 4M ounces, which is why you are hearing calls for $120-160 market cap, which would be about $3.00 PPS as the company is buying back shares presently and likely getting the O/S down to near 50M.


I got this from the S EI board from the sticky there this is how they factor stock price anyone care to do the math for DGRI?

DUTCH GOLD RESOURCES, INC.
February 9, 2010
Dutch Gold Resources, Inc.(DGRI.PK) has announced extremely impressive results from
its recent NI 43-101 compliant mineral report covering an initial portion of its Basin
Gulch Project. This exciting project is located in Granite County, Montana about 19 road
miles west of Phillipsburg, which is northwest of Butte, MT.
Estimated mineralized gold volume for the discovery block totals 633 million tons
grading 0.012 ounce per ton (OPT) gold with a contained volume of 7,600,000 ounces of
gold. Within this mineralization is higher-grade volume of 108 million tons grading 0.026
opt gold, containing approximately 2,800,000 ounces of gold. The mineralization
contains locally significant associated silver mineralization that was not included in these
estimates

since we are an OTCQB we are on the tsx scale of $75 per oz
so is that 2.6m oz gold x $75 = $195,000,000 of market cap ?

Share Structure update on Nov 9th:

Shares Outstanding: 196,624,030 a/o Nov 09, 2010
Float: 95,603,987 a/o Nov 09, 2010
Authorized Shares: 500,000,000 a/o Sep 30, 2009
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57125519

$1-$2 based on the other boards formula