Splendor / FireAnt - they have a very respected mining team so they won't have made the NET CASH call lightly and it's not a marketing document as it has full break downs on everything. They are calling a net cash position by 2023 which basically puts Petra on a free cash yield that's greater than 50% and an ev/ebitda of around 2x than falls to just above 1x in 2023. If you believe this happens then you have most certainly a real multi bagger ahead.
TBTT - you are right to highlight the geopolitical risks with Ferrexpo but let's be honest, you were also saying it wasn't a buy when it was in the 100s. It's multi-bagged since. As for Tharisa, it's a slam dunk buy as one of the cheapest free cash yields and like you, I have added. Petra Diamonds doesn't get a look in presently but if they do what Peel says and reverse C.$300M net debt to cash in two years on a £145m market cap (and that's without factoring in big stone discoveries) then that's a future multi bagger also as it has the biggest free cash yield of the lot and like Tharisa is in South Africa.
On Tharisa, this should be above £2 already, only reason people are getting the chance to load at these prices is because of one seller.
If you annualise cashflows then closer to $150m by year end pre Vulcan. What will they do with cash ? Bigger dividends and I suspect more investment in Zimbabwe.
Those who like cashflows are obviously in Fxpo but won’t have been looking at Petra Diamonds yet. Peel Hunt came out with a note last week saying they expect the company to be net cash by 2023, basically a $300m+ free cash movement . On a free cash yield basis it’s cheaper than both Ferrexpo and Tharisa which get all the attention in the market . It’s unloved right now but Can see that changing very soon as finding those big rocks isn’t in the estimates .
Its a great cashflow Increase but less than some had been calling for, issues at the grinding mills impacted recoveries somewhat. Nonetheless cashflows are king and free cash yield is very strong when you factor in dividend paid also.
Well if you’re better than Peel than your “might now Make some money” is way off that’s all. According to their team this will net cash in just over 2 years, as per latest note. Thats phenomenal cash generation and free cash and ev/ebitda metrics .