Hello Haim, <<How you value NEM on proven reserves or operating profits ? If reserves how much per ounce?>>
I have actually never done such an exercise. I have simply shorted puts when the price hits certain points, bought at other points, shorted calls at higher points, and sold when I wanted a break.
I have the annual reports of HMY, GFI, FCX and NEM within arms reach right now, but have always favored NEM because of its size, liquidity, domicile, and management philosophy.
I hold bunch of energy royalties, unable to select the potential winners from the losers, even though I had built complete P/L + balance sheet + cashflow Excel models for all of them. I bought on the basis of size, track record, reserve life, geographical location (from all over Canada), and dividend yield. The valuation of all except Vermilion is in-line with each other as far as price/reserve is concerned, but definitely not a single determining factor.
Chugs, Jay |
