GREY:WHTGF - Post by User
Comment by
MVargason May 19, 2020 4:55pm
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Post# 31048278
RE:The best is yet to come
RE:The best is yet to come2019 was certainly a turnaround year for Mangazeya, but what was more impressive was the performance in Q4 of 2019.
Net earnings were $14.6 million or 1.13 cents/share. On an annualized basis, this equates to earnings of $58.4 million and earnings of 4.5 cents/share. Friday's closing price was 5 cents/share. EPS multiples are generally in the order of 10 - 20 for gold companies. MGZ has a forward multiple of just over 1!
But as Relic says "The Best is Yet to Come".
Gold prices are already significantly higher in 2020 than they were in Q4 of 2019.
Gold production is set to dramatically set to increase in 2020 when Nasedkino comes on stream with annual production in excess of 100,000 oz/yr.
I expect net earnings in 2020 to be well in excess of the current market cap.
How can this be? Well MGZ is not on anyone's radar. They trade on the NEX Exchange and they do zero promotion. All projects are in Russia and the CEO owns most of the stock. So while the upside is tremendous, there is country risk, but you'd be hard-pressed to find anything with a better risk-reward situation.
The CEO had the opportunity in the past to foreclose on his personal loans to the company and take it private. Instead he converted the company debt to equity at 25 cents per share and has continuously maintained a Canadian Exchange listing.
Full Disclosure: I purchased an addtional 202,000 shares today.