I been thinking why this Co imo is still undervalued. Obviously it's the risk with the countries we are in. So big money won't flow here. it may well do at some stage but not now and not in the future. So the SP will remain at these levels unless they unlikely change stripes.
So what makes it worth investing in a so called higher risk stock - return.
Shareholders must see a cash return in some way shape or form.
The current sp is just increasing with the price of gold and probably still not taking into account the current state of the company.
A decent return in some shape or form should force the sp to react accordingly while giving holders a boost in both camps.
In Feb the price of gold was some $300per ounce cheaper. Fair to say this will pay for most of our newest acquisition.
Think there will be $500m to develop it over the next few years I would say. Say $150m per year.
if the gold prices stay well above $2000 we should easily be able to either have a decent share buy back or capital return.
I understand the capital return will be a bit of an issue but believe this will be part of the equation.
Even with this as they have highlighted is on the table - they should be able to invest in any other decent properties or companies at will.
It's a great time to be in this company although the cogs turn very slowly they are methodical despite their appetite for risk.
PRU Price at posting:
$2.23 Sentiment: None Disclosure: Held
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