Definitely not a joke. One is seeing a material increase in cash flow generation now.
The other is seeing decreasing cash flow generation now (courtesy of catlin). With high ambitions of growing production in the near / medium / long term.
Cash today is worth more than cash tomorrow.
The valuation gap between pls and ake is still not wide enough as things currently stand.
Pls is trading at a much lower forward multiple. One can have excellent assets in the ground but unless you can monetise them ahead of others to capture the excellent pricing in the current market or ever, who cares.
Pls on track to pay a dividend equivalent to their share price less than 24months ago.. let that sink in.
Until ake delivers increased production and linked cash generation it will continue to be hope driven. Unfortunately that only gets the company so far. For march and June 23 quarters I expect pls to generate at least 4x more cash than ake but people complain about the valuation gap. Strange.
Aimo
AKE Price at posting:
$11.40 Sentiment: None Disclosure: Held
