Dont be super sure on that. Gold road is great in that it has no debt, but it also has minimal leverage. It is an exploration company with a producing asset to fund itself. The value/upside in GOR is in its investments, exploration tenements not directly levered to the gold price as much as a full producer is.
It generated 140M free cash flow last year at a price of $2950/oz and sales of 161koz. Take recent lows of GOR around the $1.35, strip out the $465M investments and GOR sits at a multiple of 7. Not expensive by any stretch. But assuming (very generous assumption) that costs stay the same as per the Sept QTR at $1959oz for CAIC. (December was a shit show at $2400/oz) and GOR still produces to its current guidance which is much the same as 2023 at 161koz and keeping multiple of 7 (debatable)
The above is fairly conservative and not bad, but the real leverage in GOR is the exploration tenements/investments and chance to find another Gruyere. If you want direct leverage to the gold price id suggest there are better companies to do so. I posted a similar roughie of RRL this morning which has a bit more leverage to gold price.
GOR Price at posting:
$1.58 Sentiment: Buy Disclosure: Held
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