RE:GGD: A debt free TRIPLE play (silver, gold, copper) + 2% NSRstockfy wrote: GGD is debt-free with approximately US$15 million cash or about CAD$19 million, see presentation, so the current Enterprise Value is only CAD$40 million or about US$30 million.
I don't include into the company's cash the 2% NSR that is valued for US$15 million, based on the offer from Agnico (AEM). However this 2% NSR is like cash and the gold mine will be in full production this year, so GGD's cash and cash equivalents is basically US$30 million, including the 2% NSR. But again, I put the 2% NSR aside and don't include it into these calculations.
GGD has been increasing its production at Parral and hit almost 400,000 silver eq. oz in Q1 2018, see the latest news, in line with the projections.
The recent optimizations do show great results and GGD expects production to hit 500,000 silver eq. oz in Q2 and 600,000 silver eq. oz in Q3, see presentation.
Additionally, GGD says that it will also produce and sell copper as a by-product this quarter.
Its operating costs will be significantly reduced this year after the sale of Santa Gertrudis and the elimination of debt. GGD has ZERO debt now, no interest payments anymore.
GGD made about US$2.5 million positive operating cash flow in Q1 and Q2 2017 when it produced and sold again about 400,000 silver eq. oz from Parral and Santa Gertrudis.
So it's safe to say that GGD will make US$2.5 million operating cash flow per quarter and more than US$10 million this year because the production at Parral will continue to rise in the next quarters, so GGD currently trades LESS THAN 3 TIMES its annual cash flow in 2018.
If this is not dirt cheap, I don't know what it is.
I agree, without interest payments and with the current production level (which will be higher q-o-q), the company will be profitable.