I am a retired broker from Macbank. The gold favourites are...

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Pactolus

1,284 Posts.

03/05/17

19:23

Post #: 24450321
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Originally posted by MIStragic ↑

Many interesting points in this presentation ... including the observation that if NST had the sector average EV/EBITDA the SP would be $6.38 ... for a gold miner that pays dividends, has solid growth, good ASIC and sensible hedging .... what can go wrong. NST doesn't publish broker reports on its site like SAR does, so its hard to know what a consensus SP target would be. SAR on the other hand is rated as deserving of a TP 1.25 - $1.30 by reputable brokers with the caveat that if the POG is <$1150 and he AUD remains relatively strong, the downside valuation is $0.60 (talk about covering one's rear). Presumably the same qualification applies to SAR competitors ?
The problem one has when buying a 'dividend paying stock' is your entry price - no point getting a 5% divvy and then seeing the SP plunge 20% ... false economics ? (dare I say it 'fools gold miner')
How one chooses between OGC WGX SAR EVN or NST seems to be based on who you talk to ....
Ditto small goldies .... which may give multiples that NST did in the past, but unlikely to in the future unless the POG goes through the proverbial roof, and no one seriously believes that will be allowed to happen by TPTB.

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I am a retired broker from Macbank. The gold favourites are Producers: EVN & OGC Junior producer SBM & Developer/Explorers DCN & GOR.
I think GOR is streets ahead of DCN.
Regrettably I sold out of NST on recommendation when the stock was "Fully priced at $1" Ouch! And followed similar advice from another source on A2M at $1.10. Ouch again!
Good luck to all.

NST Price at posting: $4.31 Sentiment: None Disclosure: Not Held
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