Gold mining stock valuation calculator

Ounces are not all equal

A company that quotes ten million ounces may be mixing categories. Proven and probable reserves have passed economic tests. Measured and indicated resources are well drilled but not yet proven economic. Inferred resources carry the lowest confidence and are not reserves. Enter each category as its own line so the calculator can show how much of the headline depends on the weakest material.

Grade, recovery and payability then convert tonnes into saleable metal. A modest grade with high recovery can beat a richer deposit that processes poorly, which is why recovery is an explicit input and not an assumption buried in the model.

Cost basis and double counting

Gold miners report cash cost and all-in sustaining cost. AISC already includes sustaining capital expenditure, so if you select it as your cost basis you should not also deduct sustaining capex separately. The calculator lets you choose the basis for exactly this reason, and the AISC guide walks through an example.

For screening, compare enterprise value with annual cash flow using a multiple you pick and can justify. For a developer, the optional mine plan produces a project NAV, but only treat it as meaningful when production, capital and discount rate come from a source you trust.

Using the result sensibly

Run bear, base and bull gold price cases and watch how much the answer moves. Highly leveraged margins mean small price changes can swing cash flow a long way. Remember that the price and cost figures are what you typed, the calculator is not a live market feed, and nothing here is advice to buy or sell. Examples and default values are illustrative, not current figures for any issuer. A sensible habit is to keep a short note beside each run explaining why you chose the price, the cost basis and the multiple, so that you can revisit the reasoning later and notice when the facts change.