Galiano Gold Inc (GAU)

[finesand]

SP $0.70: MCAP $148.07M, EV $129.58M -> EV/R 0.86, EV/FCF 2.98 (cheap)

^^ our extrapolated numbers using 4Q18 known data and previous non-GAAP gross profit margins (FCF) w/o depreciation for mining operations. Multiplying the 4Q18 results simply by 4 as a lower estimate, produced more gold in previous quarters.

Industry average multiples, especially on debt free companies are EV/R 3 and EV/FCF 7.
Therefor the competitive SP should be at $1.40.

4Q18
- Operational 61.8koz x ($1215 price - $999 AISC) = $13.3M -> AKG $6.65M; re-invested in Esaase + $7M
- Revenues 61.8koz x $1215 price = $75.09M -> AKG $37.54M
- 29% Mining Op Gross Profits $10.89M (FCF)
- Cash US$25.9M by JV + US$10.4M AKG

> Cash $10.4M (AKG) + $12.95M (1/2 JV) = $23.35M
> Total Liabilities - Cash = $-18.49M
- SP $0.70: MCAP $148.07M, EV $129.58M -> EV/R 0.86, EV/FCF 2.98
- SP $0.80: MCAP $180.65M, EV $162.16M -> EV/R 1.08, EV/FCF 3.72
- SP $1.40: MCAP $316.13M, EV $297.64M -> EV/R 1.98, EV/FCF 6.83