Almaden Minerals Makes the Cut

Almaden Minerals Book Value

Flagship Property: Ixtaca= 100% Ownership … 1 Point

After-tax IRR = 41% … 1 Point

NPV/CapEx = 265% … 1 Point

Market Cap per Resource Ounce (< $50 is Spectacular) = US $38 … 1 Point

Cost Structure = 66% (< ½ Spot is Best) = -1 Point

Resource Base = 2.4 M AuEq ozs. = 1 Point

Future Cash Flow = US $242,260,000 … Unrated

Future Cash Flow Multiple = 3x … – 1 Point

Share Structure = 120 M = 1 Point

Debt Coverage = 0 Debt … 1 Point

Projected Future Market Cap = US $900 M … Unrated

Projected Future Market Cap Growth Percentage = 900% … 1 Point

Good Location: Puebla State … 1 Point

Conclusion

Though not a low-cost producer, with a mere 120 M fully-diluted shares outstanding, Almaden Minerals has a lot of potential upside. It has ticked enough boxes to convince us to preserve, but not add to, our stake in the company.

Score

7/11


Key

Flagship Project: 100% Ownership … 1 Point

After-tax IRR = > 20% … 1 Point

NPV/CapEx = > 1 … 1 Point

EV/Resources = < 1 … 1 Point

Cost Structure = < 50% … 1 Point

Resource Base = > 80 Mlbs. U308 … 1 Point

Future Cash Flow = Unrated

Future Cash Flow Multiple = > 5x … 1 Point

Share Structure = < 200 M … 1 Point

Debt Coverage = > 50% (or No Debt) … 1 Point

Projected Future Market Cap = Unrated

Projected Future Market Cap Growth Percentage = > 500% … 1 Point

Location: Friendly = 1 Point

Leave a Reply

Your email address will not be published. Required fields are marked *