GAU - Galiano Gold: A Look At The Valuation After The Drop
- Galiano Gold is down nearly 50% from its year-to-date highs after a high-cost quarter at Asanko and a sharp correction in the gold price.
- We are likely to see another high-cost quarter in Q4 with the company relying on lower grade deposits like Esaase and Akwasiso, and no longer benefiting from Nkran ore.
- The good news is that the valuation is finally becoming attractive, with the stock trading at less than 5x FY2021 annual EPS estimates.
- While I believe there are much safer ways to play the sector, I would view any pullbacks below $1.02 as low-risk buying opportunities.
For further details see:
Galiano Gold: A Look At The Valuation After The Drop