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Words: | Submitted: Wed Oct 17 2007
... declining gold price trend, GG will be zapped just like any other gold miner regardless of its growth prospects Opportunities Threats * Company's flagship high grade, low cost, long life Red Lake mine will continue to provide many years of increasing cash flows for the company * Company is exposed to Brazil and Argentina, and thus currency risk against the US dollar. Valuation Current 1-year E 2-years E EPS .63 .86 .90 PE 41.25 30.22 29.20 CFPS 1.34 1.64 1.77 PCFPS 19.40 15.85 14.68 EBITDA 1148.64 1457.32 1472.08 Enterprise Value 18912.59 Enterprise Value / EBITDA 16.47 Growth (3 year) 86.73 Industry PE 35.04 Industry PCF 18.76 Industry Enterprise Value / EBITDA WACC 11.63% Target price 30.45 99 percentile Target price 26.43 Sentiment 1-year alpha -.000013 6-month alpha .000525 3-month alpha .002703 2 month alpha .001754 1 month alpha .002913 Comments: Being in a slowdown and heading towards a recession I believe this is a good bet as it is countercyclical and provides a good hedge to inflation risk. I believe this stock is undervalued and their Red Lake mine will continue provide many years of sound cash flows. EPS is expected to increase almost 50% over the next 3 years. Analyst: Jaclyn Pizzo ...
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