With high gold prices, valuations are now shifting to free cash flows which are added to the balance sheet and increases the treasury position.
I refer to JAG ( $5,55 ....$439 million market cap ) as a an appropriate peer valuation model for MMY
I summarize the first 6 month financials for 2024, extrapolating the free cash flows added to the balance sheet to a full 1 year.
POG Received $2355 US
Production. 64000 ounces / year
AISC. $1553 US
Free cash to balance sheet...$33 million US annualized ( $44 million cad )
Shares 0/S.......................................80 m
Free cash flow per share ...................$0.50 cad
Free cash flow multiple ....................44 m / 439 m = 10 times
JAG is an underground gold miner hence the very high AISC which is why I exited a few years ago but Eric ( Sprott ) stayed invested and has done very well.
So, with MMY free cash flowing $28 million CAD on 10400 ounces produced in Q4 , annualized for a full year ( 42,500 ounces per year ) , its current fair value if 10400 ounces are sustained over the next year at June 2024 POG, it's fair peer based share price would be $280 million which at 340 million shares is about $0.80 per share.
At breast plate operating metrics , MMY should produce about 55,000 ounces per year over the next year as a conservative attachment to the $0.80 Fair value.
What most investors fail to notice is just how rich the current cash flows of gold producers are with gold prices above $2300 US an ounce.
Once they do, the hockey stick price explosion will make its appearance for MMY
GLTA