Imo these higher sp estimates/scenarios are based on P/E methodology and assume that the company will grow and expand into additional resources in the future, just like many resource companies do. In other words, there is no reason that GXY is limited to its current resources in the longer term, and in 10 or 15 years may use its warchest to acquire and develop/operate more assets, thereby not restricting its “peak” valuation to only percentage of the NPV of its current assets.
And also, in a hot and rapidly growing sector,
P/E ratios can shoot well well beyond typical levels due to forward-looking assessments.
Just look at Tesla with its ttm P/E of circa 1000!
That’s an extreme case, sure, but the point remains.
Imo if we get SDV and JB going at full tilt, and are making decent money from each, it makes sense that the board and management begin the search for additional assets to grow the company. And yes, of course this is many years away!
Imo
DYOR
GXY Price at posting:
$1.36 Sentiment: Buy Disclosure: Held
