Hi jogo, I often struggle to understand gold companies. For 2021, they have published their AISC to be from $1230 to $1300 per ounce and the production to be between 355k-380k ounces (see BMO presentation for details). Price of gold is ~$2200 (using AUD). If capex was 0, would you not say that the profit would be ~900 per ounce times say 355k ounces = $319.5M for 2021? This gross profit value seems to be close to the published value for 2020. How did you get the $400M capex? It looks like this is ~$200M per year based on the latest annual report. I also think 5% discount rate is a bit high but a small change to that would not affect your valuation by a lot. All in all, I see a good net income of ~$150M - $200M per year compared to a market cap of ~$1.5B, and a tidy balance sheet. Any insights on your valuation would be greatly appreciated.
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