Would you have any cost of production estimates, JJ? I read up on the Haile mine, and it is a respectable deposit of gold.
I suppose I need the following:
1. Estimated Cost of Plant and Equipment
2. Cashflow from loan to build plant and equipment with the terms of the loan.
3. Variable cost of of each ounce of gold extracted as a percent of revenue.
4. Expected yearly revenues per year.
I would use a discount rate of some sort to get the value of the expected cash-flows. I use 10% (usually) over a ten year estimated life of the mine.
Once I get the discounted cashflows as an annuity with lump sum for capex, I can take the present value lump sum and divide by the share outstanding. I suppose I would ask mgt fro estimates on capex and the interest on the loan for capex. Baring that I would use industry averages. We can at least get the present value share value for the Haile project.
Example:
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=23705837&l=0&r=0&s=AGQ&t=LISTThen again mgt could apportion fixed cost per AuEq with the variable cost making everything a fixed percentage of revenue. Anyway, I don't have enough information- in other words. Sorry if this seems too elementary.