Calibre undervalued or Wesdome overvalued?I'm not surprised that Wesdome did not pop after Q4 results. Wesdome has a market cap of $1.1B while Calibre is at 500M. Given the potential to restart Kiena and lower AISC, Westdome should be worth more than Calibre but not 2X more. Either Wesdome is overvalued, Calibre is undervalued or both. Comments?
Here's a comparison with Westdome's 2020 results converted to $US using a 1.3 exchange rate.
Westdome 2020 production of 90,000 oz
Calibre 2020 production of 136,000 oz.
Westdome revenue of $166 million (avg sale price > $1790/oz)
Calibre revenue of $242 million (avg sale price = $1800/oz)
Westdome AISC of $800/oz
Calibre AISC of $1,043/oz
Westdome = Net income of $39 million
Calibre = Net income of $63 million
Wesdome 2020 free cash flow generation of $23 million, net of investing $31m in the Kiena complex
2021 Calibre free cash flow est. of $69 million with 2021 to 2025 estimated cumulative after-tax free cash flow estimated at $319 million (at $1,800/oz gold)
Westdome reserves of 581,000 ounces at 13 g/t. Wesdome planning to release pre feas study on restarting Kierra in H2 2021.
Calibre reserves (as at December 31, 2019) grading 4.25 g/t gold containing 195,000 ounces that are planned for mining between 2020 to 2023; and
Westome M&I of 102,000 ounces at 9g/t
Calibre M&I resources of that have the potential to extend mine life through 2031. These grade about 5g/t gold containing 725,000 ounces. Company expects to release significant resource update soon. I think there's a very high chance the mine life is extended significantly.