Well they are a new kid on the block. And I will agree with you that something is holding back institutional investors from buying in. What is it? - Finance facility? Potential for a strong move up in SP if successful. - Still untested producer? Better certainty of production volume or any confirmation on previous guidance will move SP up.
GDO needs to have a good quarter of production to improve investor confidence. I am in because upside exceeds downside.
Your reservations are completely warranted. However, if they do deliver what the promise ~90koz this year, company is cheap. PE of 5 at current price of gold and production of 90koz. 150koz next year and higher POG suggests further growth.
Does anyone have any knowledge why management guidance should not be trusted?
DYOR
GDO Price at posting:
26.0¢ Sentiment: LT Buy Disclosure: Held