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I've been used to what I always considered quite complicated YE accounts when involved with the Oil Industry (exploration, extraction, refining) and a few major construction projects across several countries. For Holdings Company board meetings I've always managed to summarise P&L and Balance Sheets down to no more than 4 sheets of A4. But I've failed miserably to achieve the same for POG, so I'm somewhat encouraged when even seasoned shareholders on this bulletin board speak of opaqueness. Such unnecessary complication, duplication, and obfuscation must inevitably lead to suspicion of motives.
Drice,
I am a shareholder in both POG and HGM and can offer some reasons for the apparent MCAP disparity.
POG 2019 had a Total Debt of $594.2m and a Gross Profit of $234.8m
HGM 2019 had a Total Debt of $291.3m and a Gross Profit of $181.1m
POG's sp may be one tenth of HGM's, but POG have 9 times as many shares in issue, and a dilutive CB conversion a few years off.
POG are predicted to more than double HGM's 2020 production, but unlike HGM are unlikely to pay a dividend for some while. HGM on the other hand pay a very generous divi.
And HGM do not have a $240m debt guarantee hanging over their head. This also means that they can borrow money at lower rates than POG. Conversely HGM do not have a POX hub.
Both of these companies are IMO good investments for different reasons, and I would not sell one to buy the other. What I will say though is that HGM's accounts are far clearer than the confusingly opaque ones issued by POG.
PS: Good luck CofE with trying to work out the POX totals, costings and profits.
The 3 large large quoted Russian producers:
POLY: 391k ozs gold equiv (mv £7,711m)
POG: 186k ozs (mv £816m)
HGM: 63k ozs (mv £948m)
The POLY and HGM market valuations correlate quite well based on their production however there is clearly a massive disconnect with POG’s market valuation. I know there are many other factors involved in valuing a gold mine but surely not by about a factor of 5 in POG’s case!
As for GGP, as it has been mentioned, zero production just good prospects: MV £344m!