The current share price has Mt C EBITDA fully reflected in it, IMO. The average valuation for resource stocks is 4-6x EBITDA. I have GXY at around 6x EBITDA - see an earlier post of mine where I provide my calculations.
So yes, GXY is making profit, but, IMO, it's fully reflected in the share price. There is no additional revenue coming through the door for many years to come. Valuation isn't rocket science for resource stocks. You need to value it in relation to its peers. Not to mention that most of its peers pay a dividend. GXY doesn't pay a dividend.
GXY Price at posting:
$1.28 Sentiment: Hold Disclosure: Not Held
