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GraniteShares Gold Trust BAR

The investment seeks to reflect generally the performance of the price of gold. The Shares are intended to constitute a simple and costeffective means of making an investment similar to an investment in gold.


ARCA:BAR - Post by User

Post by BCdudeon Oct 14, 2020 1:09pm
220 Views
Post# 31714561

Lots of room to run

Lots of room to runTotally agree. Plenty of room to run here. Even at $2.00/share the market cap is only $50 million CDN, compared to ~$130 million CDN backlog (and about $250 million CDN of actual revenue the backlog represents). Deals will continue to flow as projects are moved through the pipeline and brought online. Two years from now UGE should have at least $13 million CDN of high-margin recurring revenue annually (which doesn't include project revenue), with good line of sight on a backlog that should continue to expand in the near term.

My estimate is $5.00/share within three to four years, and hopefully $10/share within five to ten. I'm not retiring anytime soon, so I'm happy to stay invested for the foreseeable future.

Would love to see this become a dividend payer at some point, once the balance sheet has been cleaned up and they get in a good rhythm of moving projects through the pipeline. Even if they were to pay $0.04 annually ($0.01 per quarter) that's only ~$1.2 million payout per year based on 30 million fully diluated shares outstanding. Very reasonable.



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