Just had to compare the market performance of LSADA to HGO.
LSADA produces gold from its Chile mine at a current rate between 40k - 50k oz pa gold at a cost of approx. $800 oz.
LSADA market value is currently $39 million based on current shareprice of 69 cents and 57 million shares. P/E of negative 153.
LSADA is planning to announce 2 million oz in gold reserves and annual production of >100k oz pa within the next 12 to 18 months. LSADA produces small quantities of copper with potential for a significant increase.
LSADA has copper assets in NSW which it will seek to off load in the near future to concentrate on Chile.
HGO market value is currently $194 million based on current shareprice of 24 cents and 794 million shares. P/E of negative 9.25.
HGO produces nothing at this time but plans to commence production from its South Australian in November 2011.
What the heck is going on with the LSADA market profile.
Am I missing something?
How does HGO and the likes justify out valuing LSADA by up to 5 times and more?
LSADA has to be the market buy of the year - in my view.
LSA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
