My read is slightly different re EV/Oz. First, I'm bracketing AZM with West African junior gold stocks.
On this basis, I come up with the following:
AZM - EV/Oz = (A$42M - A$8.5M)/ 0.754M = A$44/Oz PRU - EV/Oz = (A$669M - A$67M)/ 4.9 = A$122.9/ Oz (Close to Production) GRY -EV/Oz = (A$90M - A$25M)/1.1M = A$59/Oz ADU - EV/Oz = (A$114 - A$30)/ 2.11M = A$40/ Oz (Close to Production) AMX - EV/ Oz = (A$148.5M - A$20M)/ 1.2M = A$107/Oz MDL - EV/ Oz = (A$548 - A$25.4M)/ 3.51 = A$149/ Oz (In Production) SBL - EV/ Oz = (A$21M -A$2.6M )/ 1.2M = A$12.8/Oz CDT - EV/ Oz = (A$28M - A$4.2M)/ 0.102M = A$233/ Oz
Of the above, the one anomaly is ADU, given that it is so close to production. Difficult to work out why its EV/ Oz lags so much.
PRU and MDL seem to be roughly in parity.
SBL is another interesting one which may be lagging due to historical difficulties in getting that project up. My understanding however now is that they are pulling pretty good grades of non-refractory material.
CDT appears to be off the map, despite AZM having a much larger JORC. It's possible that AZM may have been lagging due to the fact that CDT's MD sat on the boards of both companies.
There appears to be no other reason why CDT's stock is rated so much more highly than AZM. Obviously, there may be things that I am missing...
A comparison of the relative resources of GRY and AZM would be interesting. Their projects seem to be at roughly the same stages. AZM in the greenstone belt. GRY not.
Then there is AMX. It is also off the map but it is said to be a pretty impressive discovery. Still, it has an EV/ Oz nearly triple that of AMX.
Agree that a lot of water under the bridge before production.
Like the look of AZM on the basis of the above so long as company can ramp up promotion and quality of news flow. If we get this and an increase in the JORC soon could be some good upside in the ST.
Thanks again for your thoughts SDG. Have taken them on board.
Cheers.
AZM Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
