So Fishhead, who are the peers you talk about?Lets assume we...

So Fishhead, who are the peers you talk about?

Lets assume we class it as Australian listed companies developing or producing in West Africa.

NB. Producing companies typically should trade at P/NAV multiples roughly twice that of developers

We have:

1.Mineral Deposits ( difficult to value but lets assume 50% of the value in the gold project)

2.Resolute

3.Adamus

4.Perseus


We'll then use Enterprise Value/ resources, as it seems that the corporate advisors like to use this more than anything else these days when doing company comparisons

MDL (150,000ozpa Producer)

3.1 Moz attributable resources
1.5 Moz attributable reserves

EV/Resource = $115/oz
EV/Reserve = $238/oz

Resolute (400,000 ozpa producer)

10.8 Moz attributable resources
2.6 Moz attributable reserves

EV/Resource = $32/oz
EV/Reserve = $135/oz


Adamus ( Future Developer)

3.7 Moz attributable resources
1.7 Moz attributable reserves

EV/Resource = $52/oz
EV/Reserve = $125/oz


Perseus (Future Developer)

6.2 Moz attributable resources
1.9 Moz attributable reserves

EV/Resource = $55/oz
EV/Reserve = $179/oz

There's only one on that list that looks cheap!

Looks to me from this list that Perseus may be a not quite as cheap as all believe. Longer term though, they have the ability to build on a good job thus far!