Company Evaluation

[sev3n]

Hi guys,

With the recent boom in the mining industry, how do we evaluate
a company? I used to think that the quality of resources determine
the value of a company somewhat. But recently I keep seeing
company with billion tonnes of resources with low quality goes up in
value quicker than a company with double qua but half amount
under ground.

Cheers,

Happy investing!

 

[UPKA]

if u wanna to valuate a company u can simple take the number of shares n options issued multiplied by the share price + Cash in bank. to valuate its resources could be difficult unless the company has givne a figure of the estimated figure. I'm not sure what you are asking here, u can mine a huge quantity with low grade js as well as low quantity high graded stuff, just that the cost might be slightly higher than high graded finds, depending on the economy of scale.