GREY:LACHF - Post by User
Post by
RedHorizonon Feb 08, 2011 1:35am
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Post# 18091897
Still very cheap
Still very cheap
LMA's most recent presentation has a great chart in it in which they are shown as being the cheapest gold producer around: see Slide 26. (At least the cheapest among the 24 names on the list.)
LMA is trading at 3.2x forward cash flow while the 24 gold miners listed in the chart trade at an AVERAGE MULTIPLE of 12.9x 2011 Cash flow. LMA is trading at one fourth the valuation of it's peers. That seems absurd to me since LMA's management is one of the few who actually does what they say they're going to do. At least within the past 3 years. Quality management in this industry deserves a premium.
Great success to all gold bulls.