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730 Posts.
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23/06/17
15:19
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And why not?
200,000 ounces of gold (reserves) (to be proved up by the end of the current exploration period) x a cash margin around A$500/oz = $100m in FCF.
$100m FCF @ 5 x cash flow = $500m MC.
$100m FCF @ 2.5 x cash flow = $250m MC.
NST’s MC currently 22 x cash flow.
Our current MC = $42.6m.
If one were prepared to buy now and hold for 2-3 years, it would be reasonable to expect 6 bags from here @ 2.5 x cash flow.
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