Ann: Capital Raising Presentation, page-8

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nordesmic

4,307 Posts.

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22/12/20

13:54

Post #: 49756225
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Originally posted by jogo ↑

I appreciate your considered opinion nordesmic and will look at the valuation method that you indicate.
Please note, however, that I have included DFS capital expenditure as part of the EV as if it is debt but less the amount to be raised from the placement. I have included the estimated AISC as part of earnings ratios but did not refer to these in my post. In my overall assessment of a company, I do include these as significant.
Whether to compare with other companies on a near term basis or an extended basis is a question that is impacted by investor strategy and I admit to inconsistency on this aspect by using an average production rate from the DFS.
I note that RED is subject to a DFS for KOTH just as much as GPR. As I recall, without checking the reports, the IRRs were reasonably similar.
Exploration upside is a very subjective aspect based on limited information and for a comparative analysis would need to be assessed for the comparative companies as well.

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Here's a crack at shorthand EV/NPV ratios for GPR with a couple of single asset developers. I've normalized feasibility assumptions for gold price and discount rate. CMM in WA trades at a significant premium (perhaps too much I think). EMR the most fair comparison in terms of scale and risk profile, although it is closer to production.

View attachment 2760875

Last edited by nordesmic: 22/12/20

GPR Price at posting: 44.0¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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