Undervalued cf peers Red5 & Pantoro

Heroic valuations on Australian based gold miners have prompted acquirers like St Barbara, Evolution, Northern Star, Newcrest and Resolute to plump for gold assets abroad over the past 18 months, most commonly in North America.

Medusa's valuations have been anything but heroic of late. The company has been chronically undervalued compared to ASX listed peers like Pantoro and Red5.

Pantoro produces roughly half as much gold each year as Medusa, but has a slightly larger market capitalisation.

Red5 produces slightly more gold than Medusa each year, but its market capitalisation is more than double Medusa's.

A month ago, November 26th was the biggest single day of trading in Medusa in almost three years. Street Talk understands a trade which saw about 1.6 per cent of the company change hands was facilitated by UBS, and it ensured volumes were about 33 times higher than this year's daily average.

The parcel was not bought by any of Medusa's existing substantial shareholders, and the trade was big enough to ensure whoever bought is now one of the top five shareholders in the company.

27/12/2019 Mkt Cap:
Red5 - $404 million
Pantoro - $178 million
Medusa - $160 million