OK, after AJQ went into administration - I've reviewed my stock portfolio including SVG
According to Commsec SVG currently has market cap of 8.82m It owns a milling plant, and considerable resource portfolio for such as small company. It's actively mining. This is reflective in P/B ratio of 0.44 So market may see it as undervalued.
However Debt/Equity is very high at 93.6% Beta of 1.51 showing high volatility EPS is -$0.082 so making a loss from operations. Market will see this as unprofitable, unstable and higher risk.
The market rewards companies that are cashflow positive. SVG is not cashflow positive. The problems with the milling plant, weather, mining . .. meant very high AISC in 2023
However if even for one QTR SVG can show good mill operation, grades and volumes (low AISC, and high throughput) it will be a great turning point.
SVG Price at posting:
4.4¢ Sentiment: Hold Disclosure: Held
