Price/FCF per share metrics

RBC Cap's latest report on the gold sector entitled 'Australian Golds: Trading focus on free cash flow as bull market gains momentum' makes for an interesting read. They are now moving toward a cash flow base valuation in this report as a basis of where to put your money. The chart below shows the price/FCF per share ratio across the gold miners under their coverage.

MOY in 2015 produced a free cash flow of $28M and from the most recent Beer and Co report, the FCF is set to increase to $39M for 2016.

With approximately 750M shares, the FCF/share is 5.2c. At the current traded price of 13.5c, this translates to a P/FCF of 2.6x. Now looking at the table below, we can clearly see that MOY is extremely undervalued versus its peers.