JGLD - Caledonia Mining Looks Overvalued Based On Fundamentals

June, 07 2022 05:14 PM Amplify Pure Junior Gold Miners ETF

The company booked net income of $6 million in Q1 and its gold mine in Zimbabwe is set to boost its annual output to around 80,000 ounces this year.
However, this improved performance is in line with the life of mine plan for the project, and reserves are expected to run out in 2026.
Caledonia's market valuation stands at $173.4 million, and the company's share of the remaining net cash flow from Blanket is around $117.2 million.
In my view, risk-averse investors should avoid Caledonia’s stock.

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Company Name:	Amplify Pure Junior Gold Miners ETF
Stock Symbol:	JGLD
Market:	NYSE