- Joined
- 19 October 2006
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SMO is finally coming into the black. I bought at 9.5 and feel confident with Hugh C as the big cheese and am a strong hold. Sitting at 21.5 today I expect SMO to approach .30 in early 2007, but that's just 'my' crystal ball. Re; the earlier rumours of a 'new name'....back in your box!
Good read for anyone interested.
http://www.smcgold.com.au/news/06_10_30 Aegis report.pdf
Best parts of the report for me is:
"SMC Gold's valuation is based on a combined Net Present Value calculation for the Chilean operations and a Multiple of Exploration Expenditure calculation for the assets in Charters Towers. We have determined the combined assets to be worth $164.9M, or 32.3 cents per share."
Potential
The view we have taken of SMC Gold is very conservative, given that there is scope to ramp up production significantly faster and above what we have outlined. We have also not taken into account the value of the Rishton Mill option, which, given the lead time and cost of a new mill today, could significantly save the company capital, should exploration prove successful at Charters Towers. The Aegis forecast commodity prices are also fairly conservative and if current prices remain high over the next few years, this could add significant profit, cashflow and upside to our current valuation.
Using the forecast FY08 Free Cashflow of $22.9M, a cashflow multiple of 7 times and a fully diluted share base of 510.9M shares (509.9M shares + 1.0M options), the following calculation can be made:
Cashflow valuation = ( 22.9 x 7 )/510.9 = $0.31 share price Alternatively, using the forecast FY08 NPAT of $22.5M, a fully diluted share base of 510.9M shares and a nominal PE ratio of 9 times, the following calculation can be made: Earnings valuation = ( 22.5 /510.9) x 9 = $0.40 share price
http://www.smcgold.com.au/news/06_10_30 Aegis report.pdf
Best parts of the report for me is:
"SMC Gold's valuation is based on a combined Net Present Value calculation for the Chilean operations and a Multiple of Exploration Expenditure calculation for the assets in Charters Towers. We have determined the combined assets to be worth $164.9M, or 32.3 cents per share."
Potential
The view we have taken of SMC Gold is very conservative, given that there is scope to ramp up production significantly faster and above what we have outlined. We have also not taken into account the value of the Rishton Mill option, which, given the lead time and cost of a new mill today, could significantly save the company capital, should exploration prove successful at Charters Towers. The Aegis forecast commodity prices are also fairly conservative and if current prices remain high over the next few years, this could add significant profit, cashflow and upside to our current valuation.
Using the forecast FY08 Free Cashflow of $22.9M, a cashflow multiple of 7 times and a fully diluted share base of 510.9M shares (509.9M shares + 1.0M options), the following calculation can be made:
Cashflow valuation = ( 22.9 x 7 )/510.9 = $0.31 share price Alternatively, using the forecast FY08 NPAT of $22.5M, a fully diluted share base of 510.9M shares and a nominal PE ratio of 9 times, the following calculation can be made: Earnings valuation = ( 22.5 /510.9) x 9 = $0.40 share price
- Joined
- 1 April 2006
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- 509
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- 0
Sold most of my holding on this, but looks like it might make another run and test the 24c high. SMO has appeared in speculator and share mag so people now more aware of it but apart from increased production from more efficient operations not sure if theres anything major in the ST?
maybe a change of name will help with the feng shui....?
TAMAYA RESOURCES LIMITED
The Company advises that today the Australian Securities and Investments Commission registered the change of company name from SMC Gold Limited to Tamaya Resources Limited (certificate of registration attached).
The company will shortly advise the date at which trading will commence under the expected code TMR.
maybe a change of name will help with the feng shui....?
TAMAYA RESOURCES LIMITED
The Company advises that today the Australian Securities and Investments Commission registered the change of company name from SMC Gold Limited to Tamaya Resources Limited (certificate of registration attached).
The company will shortly advise the date at which trading will commence under the expected code TMR.