Thursday, April 29, 2010

Gold Reserve Analysis


  • ABX has most GEO
  • HMY is valued low because of high production costs
  • AUY - "over 30% of the firm's gold reserves, as well as the bulk of its copper and molybdenum reserves, are locked up in Agua Rica, a massive undeveloped metal deposit where mine construction will not start until 2012 at the earliest"
  • GRS is overvalued based on production costs,reserves are declining, small reserves
  • EGO and AEM are low cost producers
    • "Agnico-Eagle similarly boasts relatively low production costs, and furthermore owns a slew of attractive development projects throughout North America."
  • Other factors to consider when determining the company's overall value
    • production costs
    • geopolitical risk
    • project pipeline

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