Contents
Introduction − Juniors Outperforming Producers 2
Sector Fundamentals Favouring Juniors 3
Consolidation Trend Continues Out of Necessity 3
Valuation Methods − Choosing the Right Approach 4
1. Enterprise Value per Ounce − Not All Ounces Are Created Equal 4
2. Margin-Based Valuation per Ounce − Total Acquisition Cost 6
3. Net Asset Value Based on Discounted Cash Flows 7
Top Recommendations 8
Gabriel Resources Ltd. − Buy for Attractiveness and Takeover Potential 8
Western Goldfields, Inc. − Production Next Year; Ready for Opportunities 9
Management’s Challenge: Avoiding the Trough 9
A Case History − Desert Sun Mining 10
Conclusion 11
Reserve and Resource Database 12
Recent Gold Sector Transactions Database 14
Gabriel Resources Ltd. 15
Greystar Resources Ltd. 39
Miramar Mining Corporation 55
Western Goldfields, Inc. 75
Glossary of Terms 93