Dear zog
I am also a Buffett fan and appreciate he doesn’t like the commodity stocks
that said, I wonder how he would go about valuing a gold company
- which is debt free
- owns a $180 million plant (replacement value)
- now has a quality, experienced leadership team
- cash at bank (~$30 million)
- years of future tax losses
- guidance (FY24 - which is this current year) to earn ~ $50 million (70,000 ounces x $2300 AISC)
- guidance (FY25 - which is next financial year) to earn $125 million (100,000 ounces x $1750 AISC)
- FY26 further growth delivered through additional underground (ounces potentially up 50% if second underground developed)
Warren would look at risk of execution (tick)
Warren would discount and model future cashflows
I suspect Warren would then want to discuss with management the future potential of hedging some future revenues, dividends, share buy backs etc
Dear zogI am also a Buffett fan and appreciate he doesn’t like...
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64.5¢ |
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Mkt cap ! $1.201B | |||
| Open | High | Low | Value | Volume |
| 69.5¢ | 69.8¢ | 64.0¢ | $4.335M | 6.505M |
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| No. | Vol. | Price($) |
|---|---|---|
| 1 | 25931 | 64.5¢ |
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| Price($) | Vol. | No. |
|---|---|---|
| 65.0¢ | 22139 | 1 |
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