Free Cash Flow really changes things More that think about it my #1 concern was cashflow and especially free cash flow. Under Selby the reason we had to sell all those shares over and over was one thing in the bottom line, serious negative free cash flow. The company bled cash far faster than net income losses in 1Q and 2Q. The last stock sell was due to prior months negative FCF. Free cashflow is one of the harder things for gold miners to do. That is why:
Barrick 33 P/FCF, PVG = 17.5, KL =30
In 4Q looks like we are 5.6 P/FCF run rate. Have looked at 10 other gold and silver miners and can not find one as good. Even what is considered the cheapest silver SVM is like 90X FCF. Other metrics are quite good for SVM .
Huet told me this time last year roughly when he joined the board RNC had the highest valuation compared to reserves/resources he was aware of out there. We knew that would be improve, but in rear view mirror that was the case. Hence why he wanted HGO, Mill and big reserves/resources.
Compare that with today. Not only big resources maybe the best free cash flow per oz of gold poured out there. Think Huet and Sloane are doing a great job. Free Cash Flow is the hardest metric there is to fudge.
Cheers