Gold for $10 an Ounce

Oct 27, 2007

The Australian Gold sector is about to be transformed. Never before have investors been able to sort through the whole sector, comparing stock for stock, number by number. Get in now, before the bargains disappear. GoldNerds have arrived.

The ASX Precious Metals sector is full of random valuations. Here's proof:

		$25/oz for a gold Producer with the 4th largest resource on the ASX. Debt free. Unhedged. In Australia.
		10 million ounces of gold inside a HUGE platinum resource. Ignore the platinum. The gold byproduct sells for just $6/oz!

There's reason they're cheap right? But is it a good one? These are large JORC resources, in democracies, with good grades. The EV valuations take debt, hedging, cash and options into account. Producers usually go for $60 - $200 per ounce, not $25. It's not the cash cost, not the ore type, not the country. Perhaps no one is looking?

There are others. There are 7 companies with an EV/oz of $10 or less. Look at the graph below to see how cheap some resources are compared to others. How do your investments stack up? Which 'dot' on this graph are you buying, and are you missing out on the 'hottest stocks' no one has heard of yet?

No serious gold investor can afford to ignore the fundamentals.

GoldNerds provides the only tool for ASX gold investors to compare all the stocks you need to know about.

We're investors who got tired of trawling through ASX announcements looking for fundamentals. We built up a team of 12 researchers. Let us read more than 10,000 ASX announcements for you each year. Sort through the Goldnerds sheet yourself to find the few companies that you need to keep up with. We know what you need. We'll save you hours. Pick the right stock and we'll help make you thousands.

There are large database providers who track mineral projects worldwide, like Intierra and MEG, they charge anything from $3000 to $18,000 pa. We give you all the info on Australian Gold and Silver that matters, updated regularly, for just $149 - $399. It's tax deductible, and one good trade will reap that back tenfold. Soon you may be competing with GoldNerds everywhere. Ouch. What serious investor can afford to be the last to know the news?

The GoldNerds spreadsheets cover everything: Share prices, Options, Cash, Debt, Hedges, Resources, Reserves, Production, Cash Cost and more. The Standard Sheet calculates Market Cap per ounce. The Professional Sheet does all that and more. It calculates EV per ounce and includes full options, cash, debt, development costs, and total cost of ownership.

One of the longest standing methods of valuing gold investments is the cost of the underground ounces. It has been forgotten. As the price of gold rises, the companies with ownership rights to large tracts of gold will benefit the most. The underground gold resource is THE largest asset within any successful explorer or producer. Plants and equipment cost millions, but the gold itself is worth billions. The sheer scale of the value of insitu resources or "contained metal" trumps the other factors. The other points matter, but who can afford to ignore the cost per ounce? No one.