Run rate earnings currently > 6 mil net Latest Q adjusted for all the noise, like the AR writeoff and foreign exchange, = net after tax after depreciation, interest ernings of 1.8 mil - 1.9 mil for the quarter.
From their call, margins are expected to remain elevated, so we can expect that as a quarterly run rate for earnings. There is one seasonally weak quarter, perhaps .5 mil - 1 mil.
The total run rate earnings comes to 5.9 mil to 6.7 mil per year. Market cap is 20-22 mil. P/E of 3, earnings yield of close to 30%.
The conference call also indicated that if the junior mining sector awakens, both their revenue and margins will increase. The junior mining sector has been asleep due to unavailability of capital. With declining interest rates and gold where it is at, there is a good chance this will begin to move favorably.
A further point is the "new" CEO is the old one that presided over the company's good years, before being replaced by a CEO, who is now gone, who presided over bad years, likely due to delusions of grandeur and making poor decisions like expanding into Africa.
The "good" CEO is back and has been simplifying operations and exited Africa. This has a dual benefit of 1) exiting a money losing operation 2) allowing management to not be distracted spending time effort and thought on that operation, and instead focus on their core market.
Any one else own this?
Long here
GLTA