Based on my findings, it seems the goldies with the best margin per oz are the ones trading around the highest premium to equity. CMM, GOR, RMS and developer SPR are all strong, WGX, RED and OBM are expected to continue improving their margins whilst the rest I'm following are struggling for traction. WAF and PRU have fallen victim to the recent political instability in West Africa. AMI is reliant on a strong Zinc price and developing Federation deposit. RRL is struggling with its ludicrous hedge position and an underperforming Duketon. Calidus is near bankruptcy, ALK has a CAPEX intensive 12 months ahead. NST and EVN are still making great operational cashflow but are capital intensive businesses. My pick for a smoky is PNR. If they can push up their margin enough to accelerate debt payments, they could be a big winner over the next 12 months.
Note: FCF projection is not adjusted for corporate or finance expenses. SPR hypothetical production is based on 150k oz per annum at an AISC of $1,900, and 100 million debt to fund their re-start and 30m growth capex for continued exploration and contingencies.
DYOR GLTAH
RMS Price at posting:
$1.59 Sentiment: Buy Disclosure: Held
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