How do you arrive at a valuation of the mining properties ? I agree mill has value and certainly replacement cost more than what the purchase price was. But how can you assign a value to the mining properties ? We do not know even estimates of -
1. What category of resource is present
2. Cost to develop and extract
3. There is no Net Present Value Calculation (NPV)or support
4. No calculation of Internal Rate of Return (IRR)or support.
5. There has been no feasibility study to establish reserves.
I would like the price to go up as much as anyone and agree there is some speculative value here, but there is no information as to what sort of resource do they have whether just potential, or inferred,indicated or measured,the standard categories. The SEC frowns on inferred classification, but mineralized material can include indicated and measured. For reserve study they would need calculations on capex and operating costs, and cash flow forecasts.
We do not even have a rough calculation of working capital necessary to begin operations.
So I am curious how can one assign a valuation of 1/2 a billion dollars ? I think we would all agree if they had established reserves they would announce them.
