YouTube Post: Mormons & Optionality
Optionality: gold/silver in the ground that is valued significantly below market cost.
I just posted a video on my YouTube channel. I quickly go over the Mormons (7 silver miners), and then review my recently updated optionality list.
Optionality: gold/silver in the ground that is valued significantly below market cost.
YouTube Link:
Q & A
Question:
When is gold/silver considered significantly below market value? When is it cheap? Silver under 20 cents per oz? Gold under $20 per oz?
Answer:
You decide. It costs at least $50 per oz to find gold on a new project. The average cost is above $50. I don’t have a strong feeling for the average cost to find silver, but if we use a GSR of 50, it would be $1.
This is a complex question. What is cheap? There are many variables that come into play. For instance, how advanced is the project? How many more oz’s will they potentially find? Is it an exploration, development, or producer? Is it in a good location? Is it economic today? And on and on,
In a general sense, gold below $20 and silver below 50 cents is cheap. Above those levels, then you have to look at all of the variables.