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)
$3000 - $167M FCF - $1.59
$3200 - $200M FCF - $1.81
$3300 - $216M FCF - $1.93
$3400 - $232M FCF - $2.04
$3600 - $264M FCF - $2.26
$4000 - $329M FCF - $2.71
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.
Ann: 2023 Annual Report, page-13
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Last
$1.59 |
Change
-0.015(0.93%) |
Mkt cap ! $1.722B | |||
| Open | High | Low | Value | Volume |
| $1.55 | $1.60 | $1.55 | $6.330M | 4.012M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 34375 | $1.59 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.60 | 15853 | 3 |
View Market Depth
| Last trade - 16.10pm 24/05/2024 (20 minute delay) ? |
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Last
$1.59 |
Change
-0.015 ( 1.27 %) |
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| Open | High | Low | Volume | ||
| $1.55 | $1.60 | $1.55 | 825978 | ||
| Last updated 15.59pm 24/05/2024 ? | |||||
| GOR (ASX) Chart |