Ann: Quarterly Activities and Cashflow Report, page-232

By the above chart, all those around the 500 line are considered as cheap. However my opinion is that the above comparison can be misleading because it does not capture the profitability of the gold miners.

For example, SBM may be around the 500 mark purely because it has huge reserve but the question is whether the reserve has high ASIC or not.

I reckon the best measure of the valuation (or understanding of how cheap a company is) is through the cashflow modelling that we had done. Above comparison is probably just a gauge only and useful if one doesn't want to go through the operational details of a company to work out its more accurate true value. It is too simplistic and therefore prone to misrepresentation.

Just my opinion.

Cheers.