With the current market environment, we have seen the Gold Miners be sold off along with the rest of the market, but the gold price significantly less.
While we are seeing analysts downgrade the gold price targets (to around current prices of $3000USD) and Silver presenting a cyclical risk, we now see the value in the gold miners, who have significantly lagged the gold price over the last 5 years by 42%
Trade:
Sell ETPMPM >$283.00 (take profit 12%)
Switch to
Gold Miners ETF GDX :ASX
or
Newmont NEM:ASX (Large Cap)
Capricorn Metals CMM:ASX (Mid-Cap)
Capricorn Metals CMM:ASX
Financial Performance 📊
Metric | FY2024 | LTM2025 | YoY Change |
Revenue | A$359.83M | A$381.08M | +5.9% |
Net Income | A$87.14M | A$75.89M | -12.9% |
ROIC | 30.1% | 21.5% | -8.6% |
ROE | 30.8% | 18.0% | -12.8% |
Valuation Analysis 🔍
Metric | Value | Warren’s Take |
P/E Ratio | 34.1x | Expensive for a gold producer |
Price/Book | 5.8x | Significantly above industry averages |
Earnings Yield | 3.8% | Low yield relative to alternatives |
Fair Value Upside | 11.5% | Modest upside potential |
Analyst Sentiment
With 7 analysts covering the stock, the mean price target stands at A$8.69, suggesting an 11.5% upside from current levels. Targets range from A$8.00 to A$9.90, with a consensus recommendation of “Buy”.
Market Performance 📈
The stock has been a stellar performer with a 52.3% return over the past year, trading near its 52-week high of A$8.65. Technical indicators show strong bullish momentum across multiple timeframes, particularly in weekly and monthly views.
Strengths 💪
- Strong cash position exceeding debt levels
- Impressive ROIC (21.5%) and ROE (18.0%) despite recent declines
- Consistent profitability with positive operational cash flow
- Excellent long-term performance (strong 5-year and 10-year returns)
- Liquid assets exceed short-term obligations
Concerns ⚠️
- Trading at premium multiples (P/E, P/B, EBITDA)
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.