TSXV:AUN.H - Post by User
Comment by
TheRock17on Sep 03, 2007 3:22pm
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Post# 13335369
RE: Current Cash flow Estimates
RE: Current Cash flow EstimatesPrecious metal stocks trade well above 15 times cash flow.....EDR and GPR cash flow multiples are so high that they are off the chart.
Base metals trade at about 7.5 times cash flow.
The actual multiple which is a commodity stock generates, relative to the peer group mean, will depend on a variety of factors.......cash costs, debt, reserves, balance sheet and growth premium.
AUN should compare well with the peer group mean.
So, being both a base metal and a silver producer, its cash flow multiple should be intermediate, and 12.5 would be close to an intermediate c/f multiple.
The RI used 10 times cash flow, and that is not all unreasonable.
Note also that, as the other ore bodies are mined ( A La Cran has a lower silver content ) and as the high grade silver mine at Rosario comes into production, AUN will be treated more like a PM stock than a base metal stock.....