I agree. VAU can double provided gold prices hold. Whats going to happen to gold prices? Share values of hedged gold miners across the ASX are being reduced by much more than the value of the hedge liability at the moment. At the end of this calendar year the hedge liability for VAU will mostly be gone. If gold holds up then the VAU share price benchmarks at about 50% to 70% above the current value. This is based on an enterprise value of about $4B plus cash and bullion on the balance sheet. Then, if gold shares re rate to a more traditional multiple of EBIT the MC is easily in range of $7B and the share price is easily in range of $1. it all depends on gold prices and what they do.
VAU Price at posting:
49.5¢ Sentiment: Buy Disclosure: Held
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