GOR - Gold Road Resources

[finicky]

Some 25 Sept comments from Greg Canavan about the gold positioning in his p/f and referencing GOR. In an earlier piece back in January he valued GOR at $1.60 but the valuation would be higher now for the unhedged 50% of Gruyere, the De Grey holding and reserves/resources, considering the surge in the $A gold price. From posters elsewhere there seems to be a dissatisfaction with GOR management with opinions that they have too easy a gig for what they're paid since the interest in Gruyere has no operational responsibilities. Some think that free cashflow is being blown on ineffective exploration instead of being returned to shareholders. Uncritically, I had the view that the 'Golden Highway' and 'Yamarna' prospects and resources were showing enough result for the exploration budget but it's not like I scrutinised the costs vs rewards. Luckily I only took a starter pack of shares with my first buy where I assumed a break of $2 was imminent.

Held
Holding

Greg Canavan (fat tail investment advisory)

"As far as our three holdings go, I think WAF has the greatest upside. But also the greatest risk given it’s Africa-based.

NST is around fair value here, or possibly slightly overvalued. It’s a difficult one. Accounting earnings understate its true profitability. But the ‘cash earnings’ that management points to in their results overstate true profitability due to low to zero tax paid.

That will change in the years ahead, so you have to adjust for that.

While NST appears fully valued, it plans to grow production significantly in the years ahead. So it’s worth keeping a core position.

GOR is the cheapest because it has a lower mine life. It is therefore leveraged to exploration success. For this reason, its exploration spend is quite hefty. That’s another reason the market isn’t too excited about it.

But it holds a strategic stake in De Grey Mining [ASX _ DEG] which at these gold prices must be attracting interest from the global majors.

In addition, the market isn’t pricing in much profit growth from the Gruyere operations (using improved 2025 performance as a baseline) so I think it’s worth maintaining a position in GOR.

Action to take: To sum it, I think the significant rally in gold this year provides us with a good opportunity to take some profits and reduce exposure to around 5% of your portfolio."

 

[brerwallabi]

Just realised I must post something in the GOR thread, it’s been a bit flat on the news side.
Seems to be more happening in DEG which GOR still holds an amount of shares in the high teens of DEG.
GOR can be incredibly frustrating when the share price does make some improvement it continually falls back only to go on another run, seems like it’s a groundhog stock.
The dividend this year was a miserable half cent down on last years one cent, guess it might buy a half decent cab sav when I get it.

 

[mullokintyre]

Just realised I must post something in the GOR thread, it’s been a bit flat on the news side.
Seems to be more happening in DEG which GOR still holds an amount of shares in the high teens of DEG.
GOR can be incredibly frustrating when the share price does make some improvement it continually falls back only to go on another run, seems like it’s a groundhog stock.
The dividend this year was a miserable half cent down on last years one cent, guess it might buy a half decent cab sav when I get it.

I'm in.
A nice proxy for deg.
Mick

 

[brerwallabi]

It’s been a long wait, finally GOR makes it back to where it was at the start of the year.
Yesterday’s close at $1.975 was the highest close this year.
Of four gold stocks I own GOR has been the one that has disappointed, a few hiccups in the earlier part of the year didn’t help.
A few brokers now recommend as a strong buy.
The quarterly report no doubt will determine if the upward trajectory continues.