Baires, that's a tough question in a cyclical downturn/bottoming within a secular bull market, as there are two unkowns.

1) What do you want to use as the discount rate?

2) How much profit per ounce ounce of gold do you want to assume?

I don't have quantitative answers for either question. But, I have been rolling the second question around in my head for awhile. We're in a deflationary environment (with central bank fighting this tooth and nail). In such an environment, we may see demand for non-monetary commodities (e.g., oil) fall and real wages continue to fall. That sounds bad, expect when you consider the business of precious metals mining. Such conditions may foster expansion of profit margins at miners over the coming years, not simply from increasing prices of gold and silver.

Still keeping the faith,

Old School