AMI

2.94%

17.5¢ aurelia metals limited

AMI versus GOR. Which valuation is wrong?, page-2

First 2 Last

Share
Profile

Follow
firehawk08

1,739 Posts.

147

24/07/19

13:04

Post #: 39668946
Share

Originally posted by Idle Wanderer: ↑

So there is the new kid on the block, Gold Road Resources. Just poured their first three gold bars at the Gruyere, WA, open cut joint venture with Goldfields..
Current Enterprise Value for GOR is $1,230 million [Market Cap $1,230 and no net debt].
Looks like GOR will produce about 40,000 oz in the First Half during the ramp up to commercial production of Gruyere and then 75,000 oz in the Second Half for a total production of 115,000 oz for the year, if all goes well..
AISC- hard to tell but might be around $1300 oz? For sure they'll be drawing down on their $100 million loan facility during the ramp up.

And then there's the almost down and out AMI ,lying pretty much punch drunk in the gutter at the moment after taking a few heavy blows.
Enterprise Value is only $265 milion [Market Cap $365 million minus about $100 million in cash].
Just guessing but lets say due to lower gold grades in FY20 AMI drop back to a gold production of 100,000 oz but with higher base metal throughput they maintain an AISC of $1000 oz.
Bottom line is that AMI will make more money from their activities than GOR in FY20. At the moment though, AMI is valued by the market at less than a quarter the EV of GOR.
So either AMI is valued too low - PROBABLE. Or GOR is valued too high - POSSIBLE.
Logically AMI has some way to go on the upside to return to a reasonable ballpark EV

Expand

Sounds like you should sell short GOR to buy some AMI.

AMI Price at posting: 46.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

BOE

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

VMS

Venture to sniff out high-grade REE targets at Jupiter project, WA

WGX

Westgold sets its sights on top five producer status through merger with Karora

NXG

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Is oil undervalued?

DVP

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

MGU

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

VMT

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

GRX

GreenX picks up prospective copper project in Germany

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

There are more pages in this discussion • 12 more messages in this thread...

First 2 Last

Add AMI (ASX) to my watchlist

(20min delay)
Last 17.5¢		Change 0.005(2.94%)		Mkt cap ! $296.0M

Open	High	Low	Value	Volume
16.5¢	17.5¢	16.5¢	$796.5K	4.693M

Buyers (Bids)

No.	Vol.	Price($)
7	951177	17.0¢

Sellers (Offers)

Price($)	Vol.	No.
17.5¢	127016	3

View Market Depth

No.	Vol.	Price($)
6	931177	0.170
16	864837	0.165
11	1127228	0.160
6	822151	0.155
6	556383	0.150

Price($)	Vol.	No.
0.175	60735	1
0.180	168070	5
0.185	118016	3
0.190	177453	4
0.195	497806	5

Last trade - 16.10pm 02/08/2024 (20 minute delay)

AMI (ASX) Chart

AMI versus GOR. Which valuation is wrong?, page-2

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Venture to sniff out high-grade REE targets at Jupiter project, WA

Westgold sets its sights on top five producer status through merger with Karora

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Is oil undervalued?

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

GreenX picks up prospective copper project in Germany

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

AMI versus GOR. Which valuation is wrong?, page-2

Top Stories

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Venture to sniff out high-grade REE targets at Jupiter project, WA

Westgold sets its sights on top five producer status through merger with Karora

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Is oil undervalued?

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

GreenX picks up prospective copper project in Germany

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News