The recent sharp rise in SP is nothing extraordinary. IMHO, ANW could be the most under-valued stock in ASX Mining sector – based on 2 simple investing metrics (FCF yield, FCF/MC).
Note - FCF is the key financial metric to gauge viability of mining projects (when in production).
Granville & Taronga
Target full production - generate FCF > A$ 40m annually
FCF is equal to 2.28c
FCF yield of 84% (divide by SP 2.7c)
FCF pa is equivalent to 84% of current MC
Such numbers are unheard of in the field of stock investing. In FA, any listed company that can generate sustainable 10% FCF yield is a potential strong investing case (taking into account of other factors too).
As for MT Cobalt project – this will be a huge “X” factor.
Amazing investing case. DYOR
ANW Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
