I bought some Draig on the basis that they are cheap. 44c (or 2.2c pre 1/20 consolidation) is way below their trading history. But on reflection are they cheap?
They had $500,000 cash at 30th September and raised $17m in the issue at 50c. They have paid $7.67m for the licences leaving about $10m in "cash". There are 59,338,779 shares on issue (over 70m if options are exercised) so at 17.5m asset value that's 29.5cps. However at 44c the market is saying the company value is $26m - well above the $17.5 asset value.
Also the market usually discounts the value of cash because it's about to be spent so the share price should be, say, about 20c, maybe 25c.
Perhaps Peabody sold the leases for half price but I suspect they are more commercial than that.
Investors (including me) are placing a big bet on early exploration success.
value vs share price
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Last
$1.85 |
Change
-0.055(2.89%) |
Mkt cap ! $2.172B | |||
| Open | High | Low | Value | Volume |
| $1.88 | $1.89 | $1.84 | $8.102M | 4.361M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 140129 | $1.85 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.85 | 3784 | 1 |
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| Last trade - 16.10pm 18/07/2024 (20 minute delay) ? |
| BGL (ASX) Chart |