Ramp!11 Jan 2017 22:10
Reading a googled opinion on PAF and pasted below;
On 5 Dec, PAF announced the results of the definitive feasibility study into its Elikhulu tailings project. All told, the project should add c 51,769oz gold (or 25%) to its existing production profile. Using a 10% discount rate, Edison values the project at US$69.9m, or 3.6p/share and estimates that it will add 1.33p to EPS in the first eight years of the project’s operation and 0.76p in the final five.
Last updated on 21/12/2016
INDUSTRY OUTLOOK
Assuming conservative gold production of 192koz in FY17 and including Elikhulu, our absolute value of PAF is 23.25p. This valuation assumes that the grade profile at Evander averages 6.43g/t from FY17-30 and that the gold price will average US$1,283/oz in real terms. In the meantime, at c 18p, Pan African’s shares remain well below their recent price to normalised EPS ratios. It is also cheaper than its immediate peers on at least 60% of valuation measures. Finally, it has the third highest (consensus) forecast dividend yield of any dividend-paying gold company, globally.
I cannot understand why this share has not reacted to the POG rise? Nearly $1200 today.