Okay firstly i know that all 3 firms are at very different life cycle stages of production and that there are plenty other variables one can look at to prove why each company is over or undervalued. But below are my findings:
Res Meas+Indic Total Prod '10/'11 Cost/oz MCap Cash
+bul(A$)
SLR 0 665k 1.5m 70k/100k $692 300m 28.7m
FML 186k 865k 1.9m 80k/100k $820 160m 13.4m
AMM 155k 570k 1.7m 30k/30k $600 50m 2m(May)
In my honest opinion i believe:
SLR is valued based on its proven Au production profile, decreasing production costs and its good exploration results leading to larger resources in the future. This company is purely a growth story and current holders will be please to hold over the next 2-3 yrs provided resources increase and costs are contained.
FML is slightly behind SLR (3-6 months) in its production cycle but higher production costs has kept this stock back from breaking 200m MCap. Growing resources and lower costs will eventually lead to it catching up with SLR later on and i believe anyone looking for higher growth over the 2-3 yrs will be happy to hold. The Nickel resource is a wildcard and not valued at this stage.
AAM is just being born and has to prove to the market that it can produce at its targeted 30k/pa and produce profitably at its $600/oz cost target. I believe it already has adequate resources, comparable to FML, to be at >150m Mcap but possible cash constraints and a lack of production detail will hold this stock back. However for the higher risk investors, this could be a very rewarding hold over the next 3-6 months. I hold this stock !
If i've left out certain details or offended holders of the above stocks in any way, i sincerely apologize. Its my intention to makes sense of these coys and bring to light my findings with others here. Please feel free to add any comments or correct any discrepancies. All of this is just my opinion only and should'nt be taken as investment advice.
Cheers guys....
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