There are many ways to value resource stocks. Everyone is different It is my opinion only that due to ever increasing corruption on Wall Street, and them fighting the Fed, S&P still hovering >3900 When the truth comes out systemic cashflow issues on Wall Street There is short sighted focus on US 1yr T-bills...check the 10yr yield Thus ppl are investing in negative returns now... Mortgage cliff in April 24% low rate mortgages go variable unemployment is up, but bc ppl are working two casual or pt jobs, payroll numbers look good but in fact the economy has tanked the middle class is being eradicated petrol, food, commodities to make products, less purchasing power coupled with central banks hoarding gold/ silver Gold and Silver will rally This is why they are being shorted and push down, central banks do not want gold/ silver to rally until they have hoarded enough to cushion their fall
I like free cash flow to market cap
In this case, GPR the company has no FCF
So its based on the shallow 1.5M Oz of Gold Oxide
Usually costs USD$30-50 to find 1 x Oz of Au these days.
If you have done business in PNG, Pacific you will know wheels need a special gear to move there So this mine and company is not doomed per se Sprott Private is still invested They are not dumb, not by any stretch of the imagination
27c Book value here
$13.55M Market Cap
So there Oz of Gold are @ AUD9.03/ Oz or USD$5.96/Oz,
No company has had a takeover for less than ~USD$10/Oz
Of course, there is the chance a company can go bankrupt as well.
GPR Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
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