MKO with its huge drill hits is currently valued at just 15 million with 4.2 million cash in the treasury and news due in relation to resource and new drilling campaigns. That makes the EV value at approx 12 million.
Another gold junior on the ASX just releases results of 8m at 2.43g/t, 12m at 1.46g/t and 12m at 1.34g/t and with other hits is currently valued at 45 million. Furthermore, its projects are in Burkina Faso...
Personally, it is not too difficult to figure out which is undervalued significantly. Profit takers are important as it provides consolidation but why would anyone want to sell gold shares in this market environment when the spots are increasing on a daily basis befuddles me.
I have always said that too many investors pay slavish attention to the price of a stock. The price information is easy to obtain in realtime. But if one has no understanding of the underlying value of the stock, that price information becomes useless.
Money is made on the arbitrage between PRICE and VALUE. Do your due diligence.
MKO Price at posting:
27.0¢ Sentiment: ST Buy Disclosure: Held
