No argument that sentiment is poor now. That will change and just adds to the upside potential when it does change.
"There's also the little fact of billions of shares on issue - impacts traditional stuff like EPS etc"
Very important point but also not one that should be taken in isolation. Of equal importance, you also have to look at the sp. Together they give a mc of only $121mill. For example, compare that mc to the $257mill of expected earnings from the scoping study from just the first 261koz of production. That is how you arrive at cash flow multiples. EPS on its own means nothing. A 1c eps per year is strong for a 3c stock (regardless of number of shares) but not impressive on a 20c stock. You can’t just look at number of shares on its own. That study is out of date with the POG around $140 lower today, but on the positive side the resource has grown since then and GH (and hundreds of thousands of other oz's) has been added. Also we have very recently seen that dilution may be decreased significantly so expected head grade is likely to improve and test work has shown recoveries much better than the 85% assumed in the study.
ABU Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)