Golconda Gold Ltd V.GG

3x earnings

[bows333]

While there are more compelling gold stories out there, I know of none with a stock this cheaply priced. Selling at only 3x last year's earnings, and with growing production in the year ahead. A good margin, I believe AISC is around $1,000 (give or take). They have no drill rigs operating; it is a matter of bringing the known to market. Once debt is extinguished, Summit funded for a restart, and the final payment made for Summit mine, and it appears that cash flow at $1,800 gold can do this in 2022, the company starts generating substantial cash flow per share. Good luck to all in 2022.

[cdnpatriotman]

that is IF the data is right. Remenber they just fired abruptly the CFO. Maybe they discovered something fishy in the CFO's accounting. 

[Tree2tree]

Can you explain where you get "3x last year's earnings"? By my reading of the 2020 financials, there was a modest net earnings of $4.4 million.  However, in the first 9 months of 2021, the "earnings from mining operations" were not even enough to cover corporate overheads.  So the company is bleeding cash at the moment.  Please correct me if I missed

[gilllis]

look at the financials (quarterly income statements) and you see that in the last 4 quarters, they delivered ,03c eps. So basecally, at current share price, it is valued at approx 4 x annual earnings per share.  

[Tree2tree]

Gillis you made me curious so I had to go back and check. - For the first 3 quarters of 2020, GG made essentially zero profit (the 'normal' situation for this company). - In the last quarter of 2020, by some fluke they actually made a profit from mining, amounting to $0.017 per share. - In the first 3 quarters of 2021, they went back to losing money - the small margin from mining did not