GGD's PBV at 0.4x versus Silver plays with PBV above 5x! GGD's gross undervaluation at the current price level is beyond any rational approach. This is a 5-bagger from here that can outperform this year and will still remain grossly undervalued relative to the silver peers.
GGD is debt free with ample cash (US$30 million, including the 2% NSR valued US$15 million based on AEM's offer) and its Stockholder Equity is US$130 million, so its Price-to-Book Value currently is just 0.4 times. This is absurdly low and the valuation gap with the peers is huge because:
- MAG Silver (MAG) is a silver explorer in Mexico. Again, it's an explorer, it's not a proven producer, so it has zero revenue and has been burning cash. Nevertheless, MAG's current Market cap is more than 5 times its Book Value, see Sedar!
- Silvercrest Metals (SIL) and Silver Bull Resources (SVB) are speculative silver explorers in Mexico. They are not producers, so they have zero revenue. On top of this, both SIL and SVB burn cash. But their current Market cap-to-Book Value exceeds 5 times, see Sedar!
- Maya (MYA) and Excellon (EXN). Both of them are silver producers in Mexico and Morocco. EXN has also some lead and zinc production while MYA produces only silver in Morocco. Both MYA and EXN have negative operating cash flow and positive net debt. None of them is debt-free. Nevertheless, MYA's and EXN's current Market Cap is above 5 times the Book Value, see Sedar!