RE:RE:RE:NBF - Relative Valuations - 10-yr vs 5-yr EV/DACF Spread and For those bored with the back and forth on YGR or looking for something else to investigate I have started posting a little on LUCA.v after buying some stock.
I think owning hard assets or companies producing hard assets is still a trend that has legs. Luca is in very loose terms the Yangarra equivalent in junior mining. They have a polymetallic mine as well as a goldmine in development that is just hitting commercial numbers. At current metal prices, the target is 140-160 million in revenue this year and up to 240 million USD next year.
The company recapped last year. There was some financial drama (a bank went under blocking access to funds), geological drama which they probably have figured out, new management was brought in, a big roll back and a second mine recently built still ramping to full production. Plus metal price increases in gold, copper, zinc and silver.
The company is very close to an inflection point on production milestones, cash flow and a rerate as they start to deliver. I think the upside potential over 18 months is as high as 4.00, the downside probably 35 cents. Trading at 45 pennies now.
Eric Coffin has a good interview with them on YouTube from January. See what you think.