P/E ratios from Q2 results: Newmont vs Pretium Yesterday I compared the free cash flow between Newmont and Pretium.
Today let us compare the earnings per share in Q2 between World No 1 Gold Gorilla "Newmont Mining" and our Mid tier "Pretium Resources".
Newmont Q2 adj earning per share = 0.32 USD -> 1 year forward times 4 = 1.28 USD per share expected.
Pretium Q2 adj earnings per share = 0,26 USD -> 1 year forward times 4 = 1.04 USD per share expected.
Share prices at yesterdays closing:
Newmont = 70.11 USD -> divided by expected one year earnings of 1.28 = PE ratio expected = 54,8 for next 12 months
Pretium = 12,54 USD -> divided by expected 1 year earnings of 1.04 = PE ratio expected = 12,1 for next 12 months
All said at Price of Gold for Q2, which was 1,710.87 USD per oz ( now around 2,047 USD oz)
If we would calculate PVG on the basis of the Newmont P/E ratio for next 12 months the share price for PVG would need to be 54.8 USD per share.
Well I admit that sound a bit too high. But what about half of it with a P/E ratio of 25 for a solid gold miner like PVG.
Price for a 25 P/E at PVG would need to be ~ 26 USD per share.
Uhh, unbelievable that there seems to be people who sell their PVG shares at present undervalued price valuation. Unbelievable at those huge resources which Pretium sits on behind Brucejack in the secure British Columbia jurisdiction.