Logo_UndervaluedEquity.com

UndervaluedEquity.com
Investing in Undervalued Stocks
 

Metal Equivalent Calculation - How to Calculate the Mineral Equivalents in Polymetallic Deposits

Metal Equivalent Calculation - How to Calculate the Mineral Equivalents in Polymetallic Deposits

When reading a company's press release in which they announce their mineral resources and or reserves of a polymetallic deposit, you will often see them reporting in the metal equivalents of the primary metal.

The secondary mineral(s) are being multiplied by their own current mineral prices and are then divided by the current mineral price of the primary mineral of the polymetallic deposit to get the mineral equivalent value.

For example, if company XYZ announces a mineral resource containing 1 million ounces of gold at a current price of $1,500 per ounce and 10 million ounces of silver at a current price of $30 per ounce, the calculation to convert the secondary metal (silver) into the primary metal (gold) is:

Metal Equivalent Calculation

Calculation  Answer 
(10,000,000 ounces of silver * $30 =) $300,000,000 / $1,500 =  200,000 gold equivalent ounces 

You will often find the mineral chosen for reporting on a metal equivalent basis (i.e. the primary mineral) is the one that contributes most to the value of the deposit.

 

If you would like to be the first to be informed when I add new content to UndervaluedEquity.com, please leave your details in the name grab form on the Support page!

You can also support me directly by clicking on the advertisements that appeal to you, or by making a voluntarily donation with Paypal.

Your support helps me to speed up the process of adding great, free content to UndervaluedEquity.com!

 

Cautionary Note: Always make sure to read which prices were used when the metal equivalent calculations were made, due to potential differences between the prices used for the calculations and the current metal prices, which in turn could over or under estimate the potential value of the polymetallic deposit.

 

What Type of Content Can You Expect to Find on UndervaluedEquity.com

Main Section  Description 
News (RSS)  Today's News Related to the Global Energy and Mining Stocks. On this page a RSS feed is displayed with stock market news related to the energy and mining sectors. You can subscribe to this free RSS feed too! 
My Due Diligence  How I Conduct My Stock's Due Diligence Investigation Process. If you want to know what I learned while I was conducting my due diligence, I recommend you to read all the chapters of the investigation process. 
My Stock Watchlist  Are These the Best Stocks to Buy Today. In my stock watchlist you find stocks who offer great potential, but at the time I analysed these stocks they didn't comply with all my guidelines from my due diligence chapters. 
My Stock Portfolio 

Are These the Best Shares to Buy Now. As the year 2015 has just started, I believe it's about time that I share my stock portfolio with you. Therefore, you will find my updated stock portfolio on this page.

 

 

comments powered by Disqus

About Jeroen Snoeks

Jeroen Snoeks - UndervaluedEquity.com

Jeroen Snoeks is the founder of UndervaluedEquity.com, a website for investors passionate about investing in undervalued stocks. Through UndervaluedEquity.com, he shares his experience and knowledge and will soon reveal his personal stock portfolio.


 
  Positive SSL Transparant Background