RE:Q3 profit is indicative of about $7m profit per yearMat, you can't value these companies on a net earnings multiple. Due to the high non-cash charges they are subject to, such as delpletion, depreciation, amort (this quarter $8.6 million), the only relevant way to use multiple metrics is on Cash Flow and to a lessor extent BV. Given the current quarter operating cash flow of ~$10 million, the run rate at these terrible gold prices is $40 million per year. By this standard, you are looking at a current multiple of 8x-9x. Given that a $100 increase in gold price goes right to the bottom line of operating cash flow, you can see how quickly cash flow grows on price of gold, and vica-versa. You may think 8x-9x sounds fair, or maybe high compared to other industries (companies), but the fact is these multiples are low for a streaming company. Because streaming companies focus on deals with high likelyhood of reserves and production increases, the multiples on cash flow can reasoably run around 12x-15x without the market blinking an eye.
I can't see any good argument to justify the current share price. I will admit, the "management has a terrible track record" rhetoric is convenient, but the fact is the commodity price crash caused this state of affairs, not management. If management were to only make decisions based on contemplations that the POG would continue to suffer sharp declines indefinitely (macro fundamentals don't support this), no deals would get done and this company wouldn't exist. Even at a reasonable $1300 to $1400 price of gold, most of the decisions management has made (exclding Colossus) would be doing fairly well Price of Gold drives this business and ultimately the Company's success, to a far greater extent than management. Nobody can argue this.