Post by
snowshoedb on Nov 11, 2024 11:30am
90% discount
In my opinion, the company is trading it a 90% discount. I understand the country risk and assume that a 50% discount is reasonable. That valuation is based on an annualized basis.
They will be debt-free by the end of the quarter. The price of gold is not going to change dramatically in the next 50 days. At some point the market cannot ignor the building pile of cash.
If they decide to open an open pit mine in Senegal… They will see an increase in their annual production from 85,000 ounces to over 250,000 ounces a year. As a comparison Wesdome Is putting out about 180,000 ounces and Their cost to produce is about twice what Thors costs are. Thor is open pit and Wesdome Is underground.
Wesdome market cap is 1.7 billion Thor is 180 million.
What am I missing?
Comment by
snowshoedb on Nov 11, 2024 11:32am
Assuming income continues at the current rate for Q4… The company is trading up 2.25 times earnings and 1.68 times cash flow… The company is Significantly undervalued