/biz/ - Business & Finance

>>25012265
>>25012400
A bit late since I had to do some cleaning around the house but now that I'm on my computer I felt like showing you my valuation calculation for Defiance. In fact I'll make a new calculation for the current market cap, just for you anon

Price to net asset value (the most important valuation metric for miners) for the Tepal Au-Cu Porphyry Project, based on the PEA study with US$1,500/oz Au + US$3.00/lbs Cu:
>Post-tax NPV5: US$345M = C$443M
>Market cap: C$170M
>Debt: C$0
>Formula: P/NAV = Market Cap / [NPV of mining assets – net debt]
-------------------------------------
P/NAV = C$170M / C$443M
= 0.38x

Defiance Silver, when their Zacatecas Silver Project is totally ignored and only Tepal is accounted for, is valued at 38% the value of their mining assets. For some perspective, Pure Gold Mining is valued at 2.65x the current value of their mine with US$1,500/oz Au (although worth noting that PGM has highly prospective ground and there's no telling what their UG rigs will find once they begin production).

>>3326585

>>2977240