This is what I come up with by using the discounted cash flow model. My model tells me that WAF could worth 2.35 per share with 2 mining operations (you can apply a 30% discount to the share price given the sovereign risks). I posted on my LinkedIn 9 months ago using POG 1300 to work out Sanbrado mine alone worth 92c. I had to rerun my model with 2 mines with a much higher gold spot price this time.
Should the company start hedging? Based on the DOW and S & P 500 to gold ratio, it indicates spot gold price would rise to $4075-$4785 in the gold bull run. That probably explains why some analysts like Peter Schiff, Brent Johnson, Jim Richards, Peter Hug, Joe Foster and etc are predicting $3000 to $4000 gold price.
This is just my 2 cents opinion. Feel free to disagree.
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