Following notice in a Barron's article over the weekend that HGMCY has a low valuation to revenues ratio of less than one. ($600mil revs / $570mil valuation), I have publically encouraged anybody to show me something better. Before CDE is pulled out of the bag with its .9 valuation to revenues, let me broaden the equation as it should be to include DEBT of which CDE has plenty relative to its capitalization....after all valuation (what the company can be bought for) would include its debt.
HGMCY'S calculation under this perameter is pretty easy since they have very little debt, so rather than .9 VAL/REVS we have something maybe as high as 1.1 VAL/REV (inclusive of Debt). NEM (a 5 billion dollar company with its debt) is at 3.4 and CDE with nearly three times debt to quity, interestingly, is at a very similar number to NEMs of 3.3::1 Valuation to Revenues ratione.
Stillwater is near 8 times valuation to Revenues assuming this quarter's increased revenues due to the PD explosion. Their higher number has a built in expectation for the doubling of production in future years.
Sure there may be a value to being a North American located big name miner, but under GORE that will change.