Gold Miners are historically cheap based on Gold Miners price to the price of Physical Gold Bullion.
Gold miners are also historically cheap on a Value Basis when viewed from the cash flow and Price/Earnings ratio, perspective.
In a world of media hype, illusion and excess fait money printing – reality is an important base line to track. One cannot get more real than gold, the cash flows and profits the gold miners are generating in this time of overvaluation and marketing hype.
*Gold will survive whatever happens.
*The risk / reward ratio is as attractive as it has ever been.
*This is not the time to ask, “how much money can I make in gold miners”? Now is the time for action in buying gold miners because the value opportunity does not come around very often. Rest assured, the upside is very high. Timing of the upward move is less certain, but in my opinion it is now.
Enterprise Value is defined as Market Capitalization plus debt, minus cash. An Enterprise value lower than the Market Cap is a positive sign as Cash on hand exceeds total debt.
E&D is Exploration and Development. Exploration is an early-stage company phase that is proving up the property for size of the reserve and the location of the highest concentration of the minerals in question. The Developmental phase is the buildout of the infrastructure to begin Production. Often this E&D operation is a business model in and of itself. The project is often sold to a Producing Mining company as the end-stage of the Exploration & Development project.
LOTM Research & Consulting Service
Where Value meets Buy Signals!
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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