RE:RE:What is wrong with this picture???Allenbow, the PVG presenter at the Rodman and Renshwa conferecne gave the numbers. I used his numbers. You have to listen to the presentation. It is 25 minutes long. It's more in the words than in the slides.............but basically you have:
$1,300 US gold. minus $500US mining cost leave $800US EBITDA profit margin per ounce.
The early years are 500,000 ouces of production per year at $800US per is $400M US EBITDA.
I think the presenter assumed the permitting for the mine expansion by 20%, the exploration expense in 2018 to extend the greenfield, and the extension of the underground ramps from Valley of Kings to the east where they think the trend continues, that yes, even though these are all cash costs, they are Capitalized into the mine, as opposed to being expenses on the income statement and balance sheet. So maybe this all totals $50M and leaves
$350M in actuall FREE CASH FLOW to pay down debt and repurchase the royalty stream in 2018.
IMO IF they hit their numbers as forecasted in 2018 this is easily 50% upside just on a trading basis to 6or 7 X EV/EBITDA. Very low debt relative to OCF, EBITDA, or FCF, however you want to estimate it.