I mentioned a while ago why I thought this could be a 50c stock if management delivers and gold price holds around current levels. Now to show this wasn't pulled out of thin air, my reasoning is as follows:
From recent investor preso:
CY2016 prod target: 145-160k
AISC: $US 715-815.
Now let's be conservative and say 150k production at $815 cost.
Current margin = $(1280-815)*150k
= $465 * 150k ounces
= $69.75m
This profit before tax, likely there would be deductions but conservatively still we assume 30% tax.
NPAT = $48.8m
Market cap = $359m
Forward PE = 7.4
Now if BDR hits these conservative assumptions, SP currently is far from expensive.
Arguably, if gold continues higher (which I personally think it will), a PE of double could be justified, ergo a SP well north of 60c even assuming current margins.
Know there's somes ifs/buts there but I think this one of the better value goldies out there, high risk/reward imo
- Forums
- ASX - By Stock
- BDR
- 50c stock
50c stock
-
- There are more pages in this discussion • 37 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BDR (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online