Bell Potter valuation $1.40, COVID affected, page-18

This is some really average valuation work. Not only are they using a gold price estimate for this year well below current levels they couple that with a 70 cents AUD. The currency estimate in particular seems completely tone deaf. We’re a full quarter into the year and they’re using forex and gold price that have barely been seen, and certainly not in combination.

A 12% discount rate for a producer in the best jurisdiction in the world, with minimal debt and the best new gold mine in Australia?

2 cents per share also seems conservative for a dividend estimate. That’s less than $20M for a company that should be making after tax cash of more than $100M per year and will soon have no debt. I reckon it’ll be 4 cents per year by 2021. I don’t believe GOR are going to aggressively pursue growth or acquisitions, I think they’re more likely to go down the RRL route of being a higher dividend payer.