Q2 resultsHave to say that I'm surprised about the price action. Testing a floor of $2.30? I don't put much into technicals for investing decisions, but can't ignore the impact they have on a SP.
Q2 EBITDA was $7m+ and over $17m for YTD. If this continues to $30m+ in the second half, I don't know how we can stay below $4, but that's what you get with a company that's not widely known.
I only caught the tail end of the call but they have 2 new drills booked for 1.5 years (gold operation) in Egypt and are proving that there is more than one player in the area.
Operating cash flows were great. They received a loan of $8m secured by a receivable of $8m so I'm guessing the loan will be paid once the receivable hits the bank (just timing). Other cash used to purchase new equipment, pay their taxes, dividends, etc. Seems like very reasonable cash management to me.
Not much is changing the long-term horizon because the commodities cycle is on an upwards trend.
Simple math - $.21 EPS for the first 6 months. Let's say $0.40 for the year.
Currently sitting at a P/E of less than 6.
For a company with historical profitability and about to generate $30m+ of EBITDA for the foreseeable future? Can't sit at these levels for ever, IMO. I'm holdiing on for a double which may only come at this time next year, but worth the wait as I think the current value of the company is close to 1.5x - 2.0x the SP as I write this.
Woudl welcome others' thoughts on the call if they had the chance to listen.