Gold Majors Trading at Just 4% of In-Situ Metal Value
By GCRU Gold News on Monday, December 7 2015, 09:40 - Permalink
Nevertheless, analysts make a living placing a value on the in-situ value of gold – numbers that dictate the value of a project and a company.
From our analysis, an international gold producer typically trades at a 20% discount to its in-situ value (reserves and resources).
In the last four years, gold has declined ~40%, however, the top gold producers have declined on average by 80%. These companies are now trading at just 4% of their in-situ gold value. The gold is still in the ground, and when prices rebound, expect companies to revert to the historical mean, which means something more in-line with in-situ values. The top gold producers stand to recover on average 600%.
Gold Majors Trading at Just 4% of In-Situ Metal Value
