Q: What are your thoughts on this company going forward 6 mths, 1 yr, +3 yr? Looks like an increase in insider public market buying.
Thx
Thx
5i Research Answer:
ORE is very cheap at 4X earnings, though the stock has lagged this year. Debt is 2X cash flow, a bit high vs peers but hardly fatal. Cash flow has finally turned positive, and growth of about 15% is expected going forward. The sector has been plagued by higher costs and ORE is not immune. It missed estimates last quarter, but what it has control over (production and recoveries) was fine. All in sustainable cost remain good at $926/oz. The sector has been weak, generally, but the valuation here makes it more interesting than most. Insiders own 5% and have been net buyers this year.