On page 32 of today's AFR, Tony Parry, an analyst at Resource Capital Research nominates PRU as his top pick of all gold players in West Africa.
Parry says companies like PRU are proving up resources at between $10 and $15 per ounce and the market is valueing those ounces at $50 to $100 per ounce.
PRU has 7.2 million ounces in resources/reserve. Take the mid-point of the ascribed market value for West African ounces - $75 per ounce - and PRU's gold-in-ground is valued at $540 million, less than half the current $1.2 bill market cap.
Being a shareholder I don't want to contemplate the idea that the shares are overvalued so maybe someone can suggest where the rest of the value in the SP comes from.
Expected profits/dividends from future gold sales? Takeover premium? Expectations of substantial increases in the resource? Any and all of the above?
Cheers,
Apataki
pru still a favourite.
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$2.73 |
Change
0.090(3.41%) |
Mkt cap ! $3.750B | |||
| Open | High | Low | Value | Volume |
| $2.72 | $2.75 | $2.70 | $17.12M | 6.284M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 11100 | $2.72 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.73 | 154758 | 7 |
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