The NatGold Valuation Formula
It Makes Perfect Sense!
The Logical Premise
OroEx Corp. has created a straightforward method to determine the intrinsic baseline value of NatGold. This approach is based on the idea that, financially speaking, the main difference between above-ground gold and in-ground gold is the expense of extracting it. Essentially, cost is not the same as profit—it is merely an expense. The true profit lies in the value of the gold still in the ground. By removing the extraction cost, you arrive at the baseline intrinsic value of NatGold.
Deriving Gold’s Natural Value
The World Gold Council updates the All-In Sustaining Cost (AISC) for gold production every quarter. AISC reflects the weighted global average cost of producing an ounce of gold. By subtracting the latest quarterly AISC from the current gold price, you can determine the average global profit per ounce of gold. This figure serves as the baseline intrinsic value for an ounce of natural gold that remains undisturbed in nature and is digitally mined rather than physically extracted. It’s truly that straightforward.
ESG Premium Expectation
We’ve been using the term “baseline” when discussing NatGold’s intrinsic value for a reason. Since NatGold is digitally mined in an environmentally and socially responsible manner, unlike the negative impacts of physical gold extraction, it stands to reason that in an ESG-conscious world, NatGold coins would likely attract a significant ESG premium beyond their baseline intrinsic value. However, because we cannot predict the exact amount of this premium, we take a conservative approach and only use NatGold’s baseline value when estimating NatGold coin price projections.
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