To estimate the potential stock price of 1911 Gold Corp if gold reaches $4,000 per oz, we can consider the following:
- Current Resource Base: The company has a significant resource base, including:
- True North Mine: 1 million oz at 6 gpt.
- Ogama-Rockland: 300,000 oz at 8 gpt.
- Valuation Multiple: Companies in the gold mining sector are often valued on a per ounce basis. A conservative estimate for a developing gold company could be around $100 per oz at higher gold prices.
- Potential Valuation:
- Total Resource: 1.3 million oz
- Estimated Value per oz at $4,000 gold: $100
- Total Estimated Value: 1.3 million oz × $100 = $130 million.
- Shares Outstanding: To calculate the stock price, we need the number of shares outstanding. Let’s assume there are approximately 200 million shares outstanding (you would need the exact number from financial statements for accuracy).
- Stock Price Calculation:Stock Price=Total Estimated ValueShares Outstanding=130,000,000200,000,000=0.65 CAD\text{Stock Price} = \frac{\text{Total Estimated Value}}{\text{Shares Outstanding}} = \frac{130,000,000}{200,000,000} = 0.65 \text{ CAD}Stock Price=Shares OutstandingTotal Estimated Value=200,000,000130,000,000=0.65 CAD
Conclusion
If gold reaches $4,000 per oz, and assuming a conservative valuation approach, the estimated stock price for 1911 Gold Corp could be around CAD 0.65. Adjustments can be made based on further discoveries, management decisions, and market conditions.
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