GREY:GPLDF - Post by User
Comment by
Wallstreet1112on Apr 07, 2016 7:32am
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Post# 24739769
RE:RE:RE:Fair Market Value?
RE:RE:RE:Fair Market Value?One of the metrics I use to value my miners is the Mkt Cap / AG EQ production ratio.
Great Panther has a current ratio of 32,4 based on 2015 full year production.
Silver standard has a ratio of 27,1 (including Claude's gold production)
Fortuna: 43,5
Pan american: 42,6
Avino: 12
So I find GPL lies in the mid range, and can thus be said to be "farily valued".
But what I like about GPL is that it has multiple organic growth opportunities AND is debt free. If this silve rmarket turns sour, GPL will be one of the last miners standing IMHO. And if silver shoots up, they already own ways to capitalize on this rise in the future. Compare it to a company with few options for organic growth... They would have to pick up new resources when these explorers may be valued at multiples of todays prices, thus you forego the upside.
For example; Pan American sees DECLINING production for 2016, Fortuna only really have 2 projects, Silver Standard has only Pitarilla as a game changer (but they seem to have permit problems with this giant etc). These companies have debt, no big organic growth potential to bank on etc.
Summary for GPL: Fairly valued on Price/production, Organic growth opportunities, NO DEBT, as well as being a low cost producer.
Do not take my word for it. Do your own due diligence since the silver mining business is inherently very risky. I can only say that GPL is one of my core holding in this space.