Post by
profitprophet1 on Jun 11, 2021 8:24pm
earnings thoughts
So, they've said they'll beat guidance. Here are some very simple calculations
69mill first 5 mths, say 16 more in June =85 mill first half
expansion increases capacity by approx 25% on straight nameplate so 2nd half could be 85*1.25=106
Say 190 for full year, bear in mind they're running more than 10% over nameplate capacity now, so perhaps this # could go higher
earnings at 150 forecast at 18cents, so at 190 may 23 cents, but at the higher revenue one would expect even more as fixed costs stay fixed...maybe then 25 or 26 cents (US funds). We're currently at $2.45Cdn (approx 2.04 US$). Approximately 8 times NTM earnings? seems low to me for a company with a nice dividend and a great balance sheet.
Anyone have any thoughts?
Comment by
Moogul on Jun 13, 2021 4:23pm
There is zero doubt the company is cheap on earnings, balance sheet, and growth. I would be heavily over weight at the moment if it weren't for Peruvian election and political uncertainty. Once the dust settles (even if taxes are heading higher), I'll be adding so long as the gold price remains above 1800 and there is no talk of re-patriation.
Comment by
Moogul on Jun 15, 2021 2:16pm
Yup... though that didn't stop Venezuela. And to your point, look how that turned out.
Comment by
ErinBrockovich on Jun 28, 2021 8:07am
The mining sector is too important to the government. Taxes will remain in place, and might even go up. It's just white noise. Most South American countries, like Peru, are wise enough to recognize the mess that nationalization of extractive industries will do more harm than good. It's difficult to run a mine or a mill. Very difficult.