RE: Why talk down a share?16 Nov 2019 18:15
Hi ginger!
Tonight I’ll look into NAP purchase if I get the chance. Looks as though the grades of Pd are similar but NAP is an operational mine, and has the following advantages, which monchetundra is a bit away from:
1. Record revenue: Based on 56,121 ounces of palladium sold, revenue for the quarter increased to $135.6 million compared to $94.1 million for the same period in 2018. This is the highest quarterly revenue in the Company’s history. Revenue for the first half of the year was $263.9 million based on 112,896 payable ounces of palladium sold.
2. Strong growth in net income: Net income was $36.6 million, or $0.62 per share, compared to $14.2 million or $0.24 per share reported for Q2 2018. Year to date net income was $66.1 million, or $1.12 per share.
3. Substantial cash from operations: Cash provided from operations was $58.8 million, compared to $33.1 million for the same period in 2018. Year to date cash provided from operations was $134.6 million.
4: Strong free cash flow1: Free cash flow for the quarter was $35.4 million, an increase from $16.4 million in Q2 2018; with year to date free cash flow at $90.6 million.
5. Increased EBITDA1: Adjusted EBITDA1 increased to $73.0 million, up from $37.2 million in Q2 2018. For the first half of the year, adjusted EBITDA1 was at $134.6 million.
6. Record production: Underground production averaged just over 7,000 tonnes per day (“tpd”) for the quarter, the highest in the Company’s history. This is a significant increase compared to the 5,856 tpd produced in Q2 2018 and a slight increase over the 6,755 tpd in Q1 2019.
7. Special dividend: The Company’s Board of Directors is pleased to announce that, in addition to the existing $0.10 quarterly dividend, a Special Dividend of $0.35 per share will be issued to all common shareholders of record as of September 1, 2019.(total dividend being 45c, or 34p, or 70% of eurasias share price at the time)
So they’d obviously gone further than we had in terms of production, whereas we have greater reserves.
5-10% of ground value. Not 100% sure on this but how else would you calculate it? Any less is too conservative, and I can’t see someone paying for 15-20% of the market value of something in the ground when so much work has yet to be carried out to extract it?
We would get a much higher price should we go at this ourselves for a year or two. But maybe EUA have other plans