posted
interesting post from another forum "Some interesting Valuation Comparisons.....
I came across a survey on the web of 60 Gold Stocks, carried out Gold Stock Analysts (dated February 2006). These companies ranged in market cap from $50 million to $26 billion (Newmont).
An assessment was carried out find the relationship of Proven and Probable Gold Reserves (P/P)to Market Cap. Based on the gold price at that time of $562/oz, it was found that the average market cap for these gold companies could be calculated by multiplying the P/P gold reserves in Oz by $213.00.
i.e A company with P/P of 5 million Oz/ Gold should have a market cap of $1.065 billion, if fairly valued by the market, based on this average $/Oz figure of $213.00.
With the increase in Gold price to $650.00 this figure is now c. $245.00. This benchmark figure can be used to assess if a company is overvalued or undervalued in relation to the average price per Oz. Basically, it gives a simple guideline as to what the current market cap should be if 'fairly' priced by the market (all else being equal)
I looked for comaparable companies in the survey, with similar P/P reserves as AURC.
Agnico Eagle (AEM-NYSE) P/P= 7.9 m/ oz O/S= 106.7 million Current Price= $36.75 Market Cap = $3.92 billion Market Cap per Oz of P/P Reserves = $496.20/Oz (suggests gold reserves are over-valued when compared to the market average)
Eldorado (EGO-ASE) P/P = 7.09 m/oz O/S= 301.9 million Current Price= $5.24 Market Cap = $1.58 billion Market Cap per Oz of P/P Reserves = $222.85/Oz (suggests gold reserves are near to fair value when compared to the market average)
Randgold (GOLD- NASD) P/P = 6.58 m/oz O/S = 68 million Current Price= $ 24.24 Market Cap = $1.64 billion Market Cap per Oz of P/P Reserves = $249.24/Oz suggests gold reserves are near to fair value when compared to the market average)
Then carrying out the same exercise with AURC:
AURC P/P = 7.1 m/oz O/S = 113.4 million Current Price= $ 0.33 Market Cap = $37.4 million Market Cap per Oz of P/P Reserves = $5.27/Oz (No comment!!!)
Based on current Gold prices and an average of $245.00/ Oz of P/P reserves the market cap should be valued at:
Market Cap = $1.74 billion Share Price= &15.34
(Note: The above calculation does not take account of the silver and other reserves held by AURC)
Obviously, there other factors which need to be considered as well in such a valuation such as company financials, trading history, management, exchange etc. and I haven't gone into any DD of each of the above mentioned comparative examples to see if there are other factors that may affect their valuations.....but my conclusion based on this evidence is this must be one of, if not the most, undervalued gold company out there....
-------------------- GSUS - Eternal 100 Bagger! HCPC - my favorite potential into December
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Aurus Posts Audited Financial Statements: Over $4 Billion USD in Total Assets
MONTREAL -- (MARKET WIRE) -- 05/01/06 -- Aurus Corporation (OTC: AURC) announced today that its audited financial statements for fiscal 2005 and comparison 2004 are available through its website under the online investor inquiry.
It is the firm RSM Top Audit that has prepared the audited financial statements under US and Russian Gaap and have been retained as the company's official SEC auditors. The highlight of the statements are its USD $4,099,579,465 in total assets, which represents its precious and non-precious metals inventory and reserves throughout their properties. The company's revenue remain low due to the current ramp-up of its operation and joint-venture discussions on its Klyon "Maple" property.
"We are glad to finally provide our audited financials to our shareholders and the investment public, we will continue to update the information and soon release our website with all details pertaining to all the reserves and properties," said Mr. Gerald Parkin, President of Aurus Corporation. "We look forward to continuing to create shareholder value with the mining of our gold and silver properties," further added Mr. Parkin.
About Aurus Corporation
Aurus Corporation is a publicly traded mining holding company with several precious metal properties with over 5 million ounces in gold reserves, trading under the ticker symbol AURC on the US Pinksheets market. Aurus seeks to continue acquire proven gold and other precious metal reserves in Russia and other emerging counties and operate its mines through joint ventures and or partnerships.
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
posted
This is my next one. This should surpass NDOL. I can't even believe how cheap this is. The results are audited. This is great news.
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posted
this looks like it could be massive!! should have bought last week like my instincts (and folks on this board) told me. oh well, in at .40...
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posted
I was going to buy in Friday at .30. Not a big deal. This stock is from Midland Baring. They are a venture firm that worked with NDOL. If you look at the performance of all of there stocks, you will see yet another reason to buy this. This should be up at least 100% this week. The geologist from Barrack is working with them. That's a $16b company. And remember, these results are audited.
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posted
0.50 by end of the week and 5 bucks by the end of the year and we get bought out probably before the end of the year...the same that is happening with ndol will also happen here...also same management and look what ndol did
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posted
the exposure for this one will grow after ndols buyout because the profits from there will be put in their sister company aurc... stay tuned for the next pr
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