aus: "The Gold Report" (8/24/11)
CA: One of the cheapest companies in our portfolio at the moment is Crocodile Gold Corp. (TSX:CRK; OTCQX:CROCF) in Australia, which has an extensive inventory of gold and other mineral deposits. It is a producing gold miner with over 5 Moz. of resources, but, like Gran Colombia, is being valued as though it's an early-stage, high-risk junior explorer. It is unbelievable how cheap it is. This is another Stan Bharti and Forbes & Manhattan project. Peter Tagliamonte from Sulliden is also actively involved in exploration and mine development at the board level.
The value of the company on an enterprise value per ounce basis as a percentage of the actual gold price is somewhere in the neighborhood of 1.5%. It is just incredibly cheap for a company that is producing gold and has 5 Moz. in the ground. In addition, it recently hired the former CEO of DeBeers Canada to oversee the strategic development of what amounts to a gold district around Darwin in northern Australia.
TGR: Usually they're worth at least 5%–10% in the ground.
CA: Exactly. Gran Colombia is currently 1.7% and Crocodile is 1.5%. Ironically, these two companies actually represent the companies in our portfolio that have the largest gold deposits, with Gran Colombia at 10 Moz. and Crocodile at 5 Moz. Both have plans to increase production from 100 Koz. to somewhere around 600–700 Koz. per year. Both are world-class operations run by top management with plenty of cash. Their low valuations are just an anomaly and in our estimation investors would be well advised to take advantage...
http://www.theaureport.com/pub/na/10675 |
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