Hi 1forall,
Good question. I can't say for sure, but I believe the $16+mm includes the "market value" of the mines.
I say this because the value of the mill is estimated at $11 million, according to the 10Q.
Now we have to deal with the definition of "Market Value", particularly as it relates to the mines.
"Market Value" is the price a buyer would be willing to pay, at an "arms length relationship", for any particular asset. (In other words what a stranger would price the fair value of an asset, and he would be willing to pay that amount on an open market.)
Since the mines have no assays, or industry standard tests, to prove what estimated precious metals are contained in the mines at this time, the price anyone would reasonably be willing to pay for the mines is considerably less than what their potential value is.
When CGFI has assay results to prove the mine's content value, the market value will be much higher.
Now this should not be confused with the "market capitalization" which is determined by the price of a share of stock multiplied by the Outstanding Shares. (O/S)
To directly answer your question, yes your math is correct:
The price of "one share of stock should be $16.6 MM / 5.7 shares, or close to $3?"
That is the current projected market value of a single share if stock, based on the sum of all the current assets' value.
It gets a bit confusing when dealing with the different figures.
This is a situation where, in my opinion, the sum of the parts is not equal to the whole, it is worth more.
But there is a few small parts that are still in progress. The mill is still "under repair" and the tailings repository is still not fully approved, or built.
These items discount the market value. (Like buying a used car that needs a new set of tires, a tune up and a paint job.)
I hope this gives you the information you were looking for.
A little time and I believe the $3 will be outpaced by the market cap, based on a working mill alone. Then the assay results will start to add value to the company and the PPS.
$CGFID
Don't take my word for it, Do your own research! Then you will know it's true!
