GREY:VITFF - Post by User
Post by
SeekingAuon May 16, 2019 8:52am
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Post# 29751606
Valuation VIT
Valuation VIT
First of all I whant to say, that I'm new to the Gold-mining business (since Autum '18) and that VIT is my largest Gold-developer position after the royalties.
I'm very confident that John will get the mine on start. I had made some valuation and would like to get here on SH (critical) feedback to scrutinise my valuations (cause I'm new to the biz).
For me the fair value of the company is the After-Tax NPV5%, there we have CAD 508m. When I take this value and the outstanding shares I get a SP of about CAD 0,62.
The yearly Operating-Cashflow will cover about 17,3% of the Capex. When I take a look to PGM for example the cover-rate is much higher with 43% (ok, the mine is not fully financed you can say, thats right, there we have to look after the financing what are the numbers look like).
Is 17% cover-rate for interest, repayment and exploration cost enough is there anything substantial left for the shareholders?
All calculations based on a POG of USD 1250. I can't predict what is the POG next month or year, so I take what it is with a small margin-of-safety.
Do I see it right or wrong? How does your valuations look like?
I look forward for a substantial discussion.