Galane Gold - $0.94 with $0.25/sh Q1 EPS
Posted: Thursday Aug 16 2:12:06PM 2012
With the pullback in its share price today, I decided to take a position in Galane Gold. With 0.25 / share in earnings already reported in Q1, Galane is trading at very attractive multiples and seems greatly undervalued at its current price of 0.94 / share.
Its existing reserve life of 5 years at its Mulpane Mine may be a concern to some; however given its suite of prospective, advanced projects and its strong financial position, Galane is in position to extend its current reserve life and increase its resources through the development of these other deposits. They continue to drill / explore the Tholo and Tau pits where they've stated their intentions of proving up ore below the existing pit, and which has also provided quite impressive intersections including 53 m of 4.5 g Au / t, 24 m grading 6.57 g Au / t and 15 m of 5.86 g Au / t. Their Jim's Luck project will also be a key focus where Galane intends on defining a NI 43 101 compliant resource this year. Among these and several other projects that they are exploring in the Tati Greenstone Belt (which they control all the ground), there's little doubt that Galane will continue to delineate exploitable resources to further grow production.
Given its strong financial metrics (Q1 earnings of 0.25/share and over $10 million cash on hand), its attractive suite of prospects to further growth in production as well as strong management team, Galane appears to be greatly undervalued at these current levels of (0.90 / share). With 81% institutional ownership and management holding 11.8% (according to Galane's website), I'm not the only one that feels this way. Have a good evening.