Thursday, January 2, 2014

No gold miner should be 3SD up.

I shake my head:

Why should Rio Alto be 3SD up today, when it was sub-$1.40 just a month ago?

Did someone maybe make a mistake selling this down over the past 4 months?


  1. The morans selling in early December clearly did not do the math.

    I think the company deserves a p/e ratio of at least 7-8 as things stand today. An extended oxide mine life and/or an impressive IRR for the sulphide part will justify a higher multiple of course.

    I now see 1.82 on my screen, I remember trading above 2 CAD before production even begun. I guess that is what sentiment and gold price can do to your PPS.

    Maybe the company should be a bit more aggressive, print some paper once the PPS has recovered and buy a decent property at cut price?

  2. Could be a reason: