6.75%! Another Respectable Gain Today!Torex shares gained well today! The lessor miners? They didn't fare so well!
Always buy quality!
I also noticed, on my watch list, that First Quantum Minerals, a miner with a similar profit profile as Torex mining, also rose a little.
However, First Quantum is clearly trading at a substantially higher P/E ratio than Torex Gold.
It trades with a P/E of 13.5. Torex is still trading at a P/E multiple of only 6.22. It does seem cheap!
This may seem a little like comparing apples to oranges in the mining sector. But this kind of generated profit flashes, no different color!
Torex is clearly, still undervalued, as defined this way, when it trades at only $15.18.
13.5/6.22=2.17. My percentage calculator tells me that Torex must rise at least another 117% for the P/E to reach a similar level. Under these terms, Torex Gold should be priced at $32.94 as defined by the last quarterly report. However, keep in mind that a good market watcher, always looks at a company's forward earnings potential!
In the coming year, costs associated with the development at Media Luna, will have a greater impact on the earnings in 2023, as development work there continues unabated and as it advances more swiftly. But now with the rising price of gold, any negative but temporary impact on the bottom line should now be less substantial.
The managers at Torex Gold are achieving very good success in extending the life of their very first mine. Their second mine continues to advamce! It is right on track in supporting the company's efforts to achieve and maintain maximum throughput of ore at their operating mill.
Operating the mill at maximum capacity is the best way to achieve maximum profit and growth! They are working hard to make this happen!
Higher grades, presently mined at El Limon Guajes, passing through this mill, also add significantly to that objective. Torex is well on its way to achieve that greater end. They have always achieved their past objectives and they are well aware of the great potential offered by their Morelos Complex.
Similar deposits, already held in reserve at Media Luna (advanced development project), as defined in terms of Au/Equivent, and others that may also be discovered, hold similar promise. Copper and silver as well as gold, also offer significant, future value!
More of these types of deposits will be discovered there!
Torex Gold is not adverse to the right approach in any potential M&A transaction.
According to the company's CEO, Jody Kuzenko, all possibilities may be on the table, when the time is right!
The price of gold is rising! So is the price of Torex Gold! The higher, the better!
All the best! Java