My simple conservative assumptions and calculations of the intrinsic value of MRP :-
MRE revised to 800,000oz *
Production per annum 50,000oz *
Price of Gold (AUD) = $1700/oz *
All In Cash Cost = $1350/oz *
Earnings per Oz = $350/oz
Earnings per annum = $17.5M
Total Number Outstanding Shares = 348.06M *
Future P/E = Price / Earnings per Share = 7
Price = Future P/E x Earnings per Share = 7 x ($17.5M/348.06M) = $0.35
* are all assumptions and moving variables of course, but in my mind, we are currently trading at way below the intrinsic value of MRP.
MRP Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
