IRR.L Ironridge up 40% year to date..., page-11

IRR signalled last year it will become a mining investment house. I see multiple spin off companies over the next 3 years.
What intrigues me is the psychology underpinning company valuations. Valuations applied to ASX 500
can be wide ranging using convention measures as PE NTA Div yield etc.
Valuations of junior resource and other growth stocks can be extraordinarily varied.

The market is looking at IRR. It says this is a great stock. It has a larder of valuable tenements and is about to
realize this potential. So Mr English Market happily values the company at about 6 times NTA.

The Aussie brother of Mr English Market looks at DGR. He fails to notice:
DGR is years ahead of IRR.
It has a collection of mature exploration companies.
It has paid a dividend and wishes to pay regular dividends
Nick Mather is chair of IRR
Vince Mascolo is CEO of IRR and a director of DGR
DGR has an asset backing of 0.34 when the unlisted subs are conservatively valued. The assets that are near cash are worth over 0.30cps

Mr Aussie Market who left school at 12 to farm wombats says Durr and then Durr again for effect.
He says my brain sees no basis to compare IRR with DGR.
Therefore I will value DGR at less than 40% of NTA and I will value IRR at 6 times NTA. A factor of about 15 times greater for IRR.
This is even after the chair of DGR stated DGR should be valued above NTA.

Mr Aussie Market is looking at DGR through a lens not greatly different to a wombat spotting lens that was used 2 years ago to view DGR. The old lens doesn't show that all the existing options will be exercised giving enough cash to run the company for 12 months. Twenty mill could be raised by selling a few shares over the next year.
The lens may be saying Equador is a problem for SOLG. But the incumbent govt has a love affair with SOLG. If the conservatives win they are going to court overseas investors with ten times the passion of the incumbents.

Rarely are buy signals surrounded by flashing neon lights

Waiken