Overnight, Scotiabank published a positive reaction to the Waihi study and repeated their 1-year target price of Cdn$5.
I've learned to take analyst projections with a grain of salt, but still, they make for interesting reading. Re the Scotia report, the analyst has 2020 Au production at 365k oz this year and 510k next, including 113k from Diddled.
"Adjusted" Net Income goes from $32 mil this year to $220 mil next though I would note they have SG&A expenses dropping from $54 mil to $24 next (yeah, right) and depreciation drops from $191 to $153 mil. Remember that the Q1 adjusted loss was some $10 mil and with some Covid shutdown I would pull a number out of the air and expect a Q2 loss of $15 mil and very possibly more. So to get to $32 million net this year, obviously they're expecting a barnburner second half. I believe Haile is supposed to do far better in H2 although the production split H2 vs. H1 escapes me. If I say 55%/45% I'm in the ballpark, I think.
Scotia has cash flow per share going from 36 cents this year to 60 cents next. (81 cents Cdn.) which gives you a CF multiple of 3.9 for next year. Which is exactly the reason I own this stock.
OGC Price at posting:
$3.31 Sentiment: Buy Disclosure: Held
