Hi Osprey,
From what I read, it's pretty complicated. I can't get a value on this company. They have so much going on I am stuck. If you want to get thoroughly confused read their last few press releases.
From what I can gather, their reduction in interest in the Australian mine is accompanied by a decrease in a share of gold sales. Less stock=less ounces. Not necessarily a good thing.
Also, the company with Lihir (sic) redid their hedge book, to realize gains and pay down debt, and are now partially hedged at $269/ounce (a bad move with the gold price moving up). Also, a decrease in intrinsic value of the hedge book is assured because their average hedge is now $339/ounce for a few years down the road. The current gold price seems like it will have little effect on them, for years.
There are also debt #'s thrown around in their PR's that I simply can't understand. If anyone can/cares to help, I would appreciate it. A best guess is there is more debt than we can see and that's why the 0.41/share figure has to be off and why we are trading at a quarter.
Any help would be appreciated (fuddle, you are usually good with this stuff!!), as I would like to figure out if this is worth holding LT.
Regards,
Dean |
