Interesting discussion regarding comparison to peers.
If we take a peer group of EVN, NST, SBM, SAR and GOR, and have a look at Market Cap v. Production, v. Resources and v. Reserves:
- Market Cap v. Production (most expensive to least expensive): GOR - $10,548; NST - $10,285; EVN - $9,544; SAR - $7.529, SBM - $5,030
- MC v. Resources (most expensive to least): EVN - $456; NST - $442; GOR - $391; SAR - $304; SBM - $162
- MC v. Reserves (most expensive to least): NST - $1,133; EVN - $1,042; GOR - $758; SAR - $651; SBM - $32
Caveats:
- This is my first attempt at this type of analysis - please call out any errors, but as always - please DYOR.
- It is a pretty volatile time for this type of analysis - SAR and NST both buying into Super Pit (50% each), other M&A also in play
- I've excluded the base metal byproducts in evaluation (biggest impact to EVN).
Summary:
- GOR appears to be middle valued (v. this subset) for Resources and Reserves.
- GOR appears to be expensive for Production (could be that the market has priced in some of the production ramp-up already).
- SBM consistently appears to be the cheapest stock against all 3 measures.
Disclosure: I hold GOR, NST and SBM.
I'm looking for another junior miner 1 - 2 years behind GOR's recent developments (first gold, promotion to ASX300 / ASX200, joining GDXJ, tier-1 jurisdictions, etc.) - keen to hear any suggestions.
(20min delay)