Richard (Rick) Mills
Market cap (MC) perception is in the eye of the beholder I guess.
If your MC is;
164,761,213 shares *fully diluted (after current PP) x a 0.065 share price = a Cdn$10,709,478.00 MC.
*Fully diluted must be used - commons, warrants, options and debt. After all you expect warrants/options to be exercised and debt to be paid via a share raise.
Does it matter if the MC is 10.7 mil shares at a buck, or 164.7 mil shares at .065?
Does it really matter how you got there?
If I had $25k to buy shares - 25,000 shares at a buck or 384,615 at .065 - do I not get the same amount of gold ownership in the ground, bluesky discovery potential, the same piece of mine ownership, and dividend, if ever there is a mine and dividends?
Do I not get the same dollar amount for my shares - whether for 25k or 384k commons - in a potential future buyout?
In the mean time are we not a more liquid stock?
If the share price does indeed get to the point where the warrants are exercised does that not save a lot of further dilution as they would go a considerable distance in funding a further round of drilling? And add the hopefully discovered gold to the equation?
Maybe to the point it would be the last funding to get to where it’s a saleable asset?
I get the questions about os/fd in regards to Market Cap, but I suggest the outstanding share issue isn’t a concern right now. Rather the concern is whether New Carolin Gold Corp TSX.V - LAD has enough gold now to justify a Cdn$10.7 mil MC let alone how much more they will get out of a spring 2016 up to 4,000 meter already paid for drill program.
Carolin Mine 43-101 compliant Inferred Mineral Resources Estimate, at 0.5 gpt cutoff, of 12,352,000 tonnes, grading 1.53 gpt for a contained gold ounces estimate of 607,000 ounces......A Whittle pit optimization exercise was done at a 0.5 gpt gold grade cutoff to test the potential for open pit mining.....The price of gold used was $1,500/oz, reasonable considering the current gold price and Cdn/US $ exchange rate......A significant portion (from surface down to the 875 meter elevation) of the Carolin Mine inferred resources has the potential to be economically open pit mined......That's a 12 year mine life at the modeled 1 mil tonnes a year mined.....That's 43,000 ozs gold a year, after recoveries factored in. Cdn69 mil a year at cdn1600 gold.
But never mind going gold mining, which we apparently could do, let’s look strictly at existing resources…
- 607,000 Inferred ozs of gold at the New Carolin
- 79, 000 Inferred 43-101 compliant Whittle open pit modeled ozs at the McMaster zone
- 28,700 M&I ozs in the 60% drilled tailings pond
Total M&I&I = 714,700 ozs gold
The cheapest Inferred gold ozs in the ground I’ve ever found were valued at US$11 per oz, or Cdn$15.31. Lol these were not open pit from surface, close to Hope, BC already permitted ozs.
714,700 x 15.31 = Cdn$10,942,057.00
Seems to me our current MC is well supported, no matter how we got there, re os/fd, and we have a massive already paid for drilling and mapping/ sampling programs coming with assay results from up to 4,000 meters of drilling.
MC isn’t just the number of outstanding fully diluted shares, at least not in New Carolins case. Sure there’s a lot of Co’s with blown out share structures and market caps far exceeding the worth of their project(s) but in my opinion New Carolin isn’t one of them.
I used the lowest Inferred price per oz I found, you could make a convincing case for double the price I used.
Meaning New Carolin’s shares are currently very undervalued. And if the company is moving forward, exploring and developing its 100% owned gold camp why would anyone be in a hurry to sell in a rising gold price environment?
Junior resource companies already own, and find more of, what the world’s larger mining companies need to replace reserves and grow their asset base.
Juniors, not majors, own the worlds future mines.
Junior resource companies, especially the owners of the worlds next gold mines, are soon going to have their turn under the investment spotlight and should be on every investors radar screen.
Richard (Rick) Mills
Rick owns LAD shares
New Carolin Gold Corp TSX.V – LAD is a paid sponsor of Rick’s site aheadoftheherd.com