Comparisons of operations and valuations are (unfortunately) almost meaningless imo.
One co contracts 50ktpa of spod concentrate that it aims to mine in a few years (in a sh!tty fixed-price deal in the market trough btw), and the market creams its pants and piles in. Lol.
Hard evidence of the "valuation" nonsense is the following company, which has a market cap of over 100 Billion USD. Yes that's 100 Billion with a B.
It continually loses Billions of dollars per year (billions with a B), yet continually promises riches in the future....
Q2 2020 saw an another loss of almost $2B btw.
What sort of riches might that company actually need to deliver to "justify" that market cap? EBITDA of $5B? $10B?
Or does it even matter when it's only about a game of pass the parcel...? Just don't get stuck with it when the music eventually stops...?
Maybe it is really just about who has the shiniest powerpoint slides...? ...with nice transitions and of course sound effects!
Don't forget the name of a fancy customer too! (Don't worry if the deal is crap, sign 'em up!?)
So, one could argue:
How much money GXY is making (or not) in 2025 will not dictate what the sp is.
We think is should (I think it should!), but the MM has his/her own ideas about that - if the deep learning algorithms say there is money to be made on the stock (which is not necessarily the same as the actual business making any money) by buying, then the price will go up. Simples.
Anyone who thinks otherwise, kindly explain the table above in relation to a market cap anywhere in the vicinity of USD100B.
One
Hundred
Billion.
GXY $5B by 2025? Why not?
At least we'll be making a profit! Lol.
