No better chart … no more obvious breakout, page-258

Dear zog
I am also a Buffett fan and appreciate he doesn’t like the commodity stocks

that said, I wonder how he would go about valuing a gold company

- which is debt free
- owns a $180 million plant (replacement value)
- now has a quality, experienced leadership team
- cash at bank (~$30 million)
- years of future tax losses
- guidance (FY24 - which is this current year) to earn ~ $50 million (70,000 ounces x $2300 AISC)
- guidance (FY25 - which is next financial year) to earn $125 million (100,000 ounces x $1750 AISC)
- FY26 further growth delivered through additional underground (ounces potentially up 50% if second underground developed)

Warren would look at risk of execution (tick)

Warren would discount and model future cashflows

I suspect Warren would then want to discuss with management the future potential of hedging some future revenues, dividends, share buy backs etc