Agreed worzel. This stock is exceptional value. And fairly safe as well. Fully asset backed at this price. And not some flimsy intangible asset, solid gold backing. As you've pointed out we're essentially getting the profitable mine and other assets for free at this price. Their capital management and running of the company I really like as well. The share buyback starting up again should both increase the share price and give shareholders a bigger slice of the assets. My one major reservation is the low liquidity, meaning it is less likely than other shares to become fully priced. On the flip side if it was more liquid we couldn't buy in at such a price. If they keep going as they are the share price should keep steadily rising, however at some point we will get another gold boom (hopefully soon) at which point the stock could quickly get re-rated upwards and valued more in line with other gold stocks due to the increased exposure. When this happens I see this as a potential ten-bagger or more due to the combination of gold holdings being worth a lot more, much bigger margins (higher gold price), and getting valued at the present value of future cash flows, additionally would become a takeover target with other bigger goldies flush with cash burning a hole in their pocket.
I've wondered if they have the choice to re-classify their gold inventory as a financial asset, and therefore re-value it to market value. This stock may be overlooked because their stated assets are much lower than realisable value. If the gold was valued at market, this stock would come up in screens looking for stocks with a price to book value < 1 and it might get more exposure that way. For the time being I'm happy to have the chance to accumulate more over the next year or so.
All imo dyor
TBR Price at posting:
$3.94 Sentiment: Buy Disclosure: Held
