only 30% to 40% - if miners enter a real bull market look for SPs to at least double from current levels - 2025 forward PEs for the gold sector are probably less than 8 at current spot prices maybe closer to 7 - a more normal PE would be double that level.
And if POG keeps increasing then gold stocks SP's will rise by potentially a lot more than double.
Gold stocks are ridiculously cheap at current gold prices - as an example RMS MC is $3b yet it may increase its cash, bullion and investments from about $1b at Dec 24 to $2b by end of CY 25 - ie it is selling a a ratio of potential profit in CY 2025 (excl tax) to EV at end of 2025 of 1 (yes 1) based on the current SP. The current SP of RMS and all other gold producers are as cheap as chips unless the POG plunges back to $US2,000.
Gold producers are sitting on large amounts of cash. bullion and investments and that level is only going to increase substantially in 2025.
SPR Price at posting:
$1.44 Sentiment: Buy Disclosure: Held
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