DJR con't22 Sep 2020 19:51
between $0 dollars and the current spot price; the key is to findor at least significantly narrowing that or at least significantly narrowing that range.
Industry professionals use the Comparable Transactions Method to benchmark the value of an ounce of gold in the ground. It relies on the principle of substitution; the mineral property being valued is compared with the transaction value of similar mineral properties, transacted on an open market.
The conclusions that can be drawn from the statistical analysis (courtesy of Cipher Research) determined the average price paid for gold in the ground in 2019 was $63 per ounce.
Thus, based on the above, and with a current JORC resource base of 602,000 ounces of gold, Goldstone's in situ valuation is $37.9m (£30.7m or 12.28 pence per share).
2. GoldStone’s assets lie in one of the most prospective gold belts in the world; Ghana’s Ashanti Gold Belt which hosts the 350,000 ounce per annum (production) Obuasi Mine (7 miles from GRL’s flagship asset). On this point, Prof. Amankwah of the University of Mines and Technology (UMaT) in Tarkwa, Ghana, believes the company’s current unproven resource sits at around 5million ounces of gold!
3. The company’s BOD recently reminded the market that their 2020 gold production target (in Q4 2020) was on track. And based on today’s gold price of $1,780, the project’s IRR would sit at a staggering 190%.
4. The Chinese, now clearly experiencing what has been predicted for several years — a diminishing gold resource at home — are now eyeing foreign juniors as a means of replenishing their in-ground resource. And with its significant post code, large gold resource, near-production prospects, and profound undervaluation (£18.7m market cap or 7.5p per share), GoldStone is a prime takeover target.
5. Also, the graphite space has been a huge disappointment for Australian investors. To this end, graphite hopefuls such as Volt Resources (ASX: VRC) and Graphex Mining (ASX: GPX) are increasingly switching their focus to gold by acquiring near-production African gold juniors.
6. The recent revelation by gold commentator Alisdair Mcleod that there’s a massive gold short squeeze ahead, and that it is likely to send the gold price rocketing in 2020; “Certain hedge funds and swaps dealers have tried to keep the gold price down. The swaps are now more short than they have ever been. And this is a situation where the gold price is on the verge of breaking out. Arguably it has already broken out. They (swaps dealers) are just caught (short). There is no escape for them.”
7. Stephen Roach, Yale University’s senior fellow and former Morgan Stanley Asia chairman, warning of the coming collapse of the US dollar. The internationally-renowned economist stated that, the rise of China and the decoupling of the U.S. from its trade partners is setting the stage for a dramatic weakening of the U.S. currency that is likely to end the supremacy of the monetary unit as the world’
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