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Expert Analysis

FAQs

How is the baseline intrinsic value of NatGold calculated?2024-07-01T17:08:03+00:00

How is the baseline intrinsic value of NatGold calculated?

The baseline intrinsic value of NatGold is calculated using a global per ounce average profit comparative methodology developed by the International NatGold Council. This method assesses the profit potential of NatGold by comparing the global average cost of gold production, as indicated by the All-In Sustaining Cost (AISC), against the current market price of gold. This approach provides a robust framework for establishing the minimum intrinsic value of NatGold coins, emphasizing their potential profitability in the global market.

Calculating Production Costs: The All-In Sustaining Cost (AISC) is used as a key metric in this comparison. AISC is a global weighted average calculated quarterly by the World Gold Council, based on the reported costs of each publicly reporting mining company for that period. This figure reflects the comprehensive cost faced by publicly reporting gold mining companies to mine, refine, and market one Troy ounce of gold.

Above Ground Market Price Reference: The market price used in this calculation is derived from the latest daily average price for a Troy ounce of gold, as reported by authoritative sources like the London Bullion Market Association and the NYMEX spot gold price.

Intrinsic Price Value Baseline: For example, employing a 90-day AISC of US$1,342 for Q4, 2023, and a hypothetical market price of US$2,300 per ounce, the intrinsic profitability is calculated by subtracting the most recent quarterly global weighted average AISC from the market price. In this instance, the average global profit would be $958 per ounce. This serves as the baseline intrinsic value of gold before the expenditure of US$1,342 to physically extract the gold via traditional mining methods.

NatGold’s approach diverges from traditional practices by focusing exclusively on digital mining certified gold resources in an ESG-friendly way. Essentially, the intrinsic baseline value of an ounce of NatGold is theoretically equal to the average per ounce profit realized by global gold producers, which is calculated by subtracting the average global cost of extraction from the prevailing market price of gold.

This positions NatGold as a sustainable crypto-commodity, capable of attracting a significant ESG premium, potentially even surpassing traditional gold’s market value as global sustainability awareness increases. This valuation transcends conventional production cost-profit analyses, advocating for NatGold’s price to be independently determined by its own merits as a sustainable and innovative financial asset.

Why is international transferability of NatGold mining titles important?2024-04-20T23:29:58+00:00

For the global expansion of the NatGold marketplace, ensuring NatGold mining titles can be transferred internationally to a designated NatGold tokenizer is crucial. This capability facilitates the conversion of titles into NatGold coins, significantly contributing to the growth of the NatGold ecosystem worldwide. It enables the seamless integration of gold resources from various jurisdictions into the NatGold economy, enhancing the diversity and liquidity of NatGold coins as a digital asset. International transferability supports the broader adoption and utility of NatGold, making it a truly global digital gold currency.

Why is NatGold mining considered ESG-friendly?2024-04-21T15:42:57+00:00

NatGold mining is considered environmentally, socially, and governance (ESG)-friendly because it promotes the monetization of natural gold resources without the physical extraction of gold from the earth. This innovative approach involves the tokenization of National Instrument 43-101 (NI 43-101) certified gold resources, which are kept in their natural state underground. Unlike traditional gold mining, NatGold mining does not involve the environmentally and socially detrimental activities typically associated with the extraction and processing of physical gold, such as land degradation, water pollution, and the displacement of communities.

Furthermore, NatGold mining eliminates the need for the extensive security measures, transportation, storage, and insurance required for physical gold, thereby reducing the carbon footprint and enhancing the sustainability of gold as a financial asset. By leveraging digital tokenization, NatGold provides a stable, secure, and flexible supply of monetary assets that meets modern financial system demands without the negative environmental and social impacts of traditional gold mining practices. This positions NatGold as a pivotal component in sustainable finance, offering an ESG-friendly alternative to conventional methods of gold monetization.

Who are “Qualified Persons,” and how is their independence guaranteed?2024-04-20T23:30:49+00:00

“Qualified Persons” (QPs) are integral to the Canadian National Instrument 43-101 (NI 43-101) standards for mineral project reporting. These professionals must have a minimum of five years of experience in the area of mineral exploration, mining, or project evaluation related to the deposit type and activity being reported on. Importantly, QPs are required to be members in good standing of a recognized professional association, such as the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC), among others across Canada and internationally that uphold similar professional standards and ethical codes.

The independence of QPs is critical to maintaining the credibility of NI 43-101 reports. To ensure impartiality:

Professional Ethics and Standards: As members of reputable professional associations, QPs adhere to strict ethical codes that mandate integrity and objectivity in their assessments.

Regulatory Criteria for Independence: NI 43-101 defines clear criteria to prevent conflicts of interest, ensuring that QPs do not have a vested interest in the projects they report on, beyond their professional fees for services rendered.

Mandatory Disclosure: QPs must disclose any potential conflicts of interest in their reports, including financial interests or any relationships with the company that could be perceived as compromising their independence.These measures guarantee that mineral resource estimates and technical evaluations are conducted following the highest standards of professional conduct, offering a reliable and unbiased perspective to investors and the public.

How important is maintaining good governance and a strong reputation for the International NatGold Council?2024-04-20T23:27:13+00:00

At the International NatGold Council, maintaining good governance and a strong reputation is paramount. These principles ensure that we operate with transparency, accountability, and integrity—key to building trust among stakeholders such as industry sponsors, affiliates, partners, government legislators, and the broader community. This trust is essential for fostering collaborations and gaining regulatory and public support.

A strong reputation boosts our credibility and authority, promoting high standards within the NatGold industry. It attracts quality partnerships and encourages participation from key ESG industry players, enhancing our ability to effect positive changes and advocate for sustainable practices. Therefore, robust governance and a solid reputation are vital for advancing our mission to nurture a responsible and prosperous NatGold industry.