I Am Gold (IMG.TO)

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I Am Gold (IMG.TO)

Post  lukera on Wed Dec 01, 2010 11:30 pm

I am Gold is obviously a gold mining company with 9 gold mines currently in operation(one of which opened up earlier this year).

Book value of $1.38 per share which exludes non-resource assets. Current resource estimates at $17.59.
Summing these two give us a target sell price of $19.

The target sell price is only if we see the company mine all their resources at once which is not reality.
In reality the company mines approximatly 1 million ounces a year, which at $633 profit per ounce would give us a annual per share value of $16.05. Adding this to the book value of $1.38 per share, we come up with $17.43.

Current share price is $16.50 which doesn't leave alot of head room. After discussing this with others on the forum, I would say hold off on this one

You may also look at the new mine which is expected to put out 300,000 ounces. Once the mine is proven to be reliable then that may affect the numbers somewhat.

Feel free to be critical of this analysis. I would appreciate the feedback.
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Re: I Am Gold (IMG.TO)

Post  Fred on Mon Dec 06, 2010 4:23 pm

Thanks for the advice guys... I took it (sort of). I took my own advice and my 4.5% today... two trading days later. Not huge, but real.

Fred
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Re: I Am Gold (IMG.TO)

Post  Max on Thu Feb 03, 2011 1:41 am

We worked so hard on this analysis, where did we go wrong? Stock is around $20 up from the "overvalued" $16.50 when we checked it out.

Max
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Re: I Am Gold (IMG.TO)

Post  Fred on Thu Feb 03, 2011 1:42 pm

I took my 14% at 19.80, and I will get back in near 19, or lower. The earnings estimates are all much higher than previously, and all the banks have high price targets.... from what I can see, the lowest price target is $22, with the majority of them around $25-26. For a moderately stable and moderately long term bet, thats a pretty decent percentage return.

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Re: I Am Gold (IMG.TO)

Post  lukera on Thu Feb 03, 2011 2:21 pm

Max wrote:We worked so hard on this analysis, where did we go wrong? Stock is around $20 up from the "overvalued" $16.50 when we checked it out.

I don't think we went wrong at all...financial valuation is only one piece of the puzzle as i am quickly learning. stock sentiment and technicals also weight heavily on the value of a stock. in my opinion anyway.
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Re: I Am Gold (IMG.TO)

Post  Max on Thu Feb 03, 2011 10:14 pm

I still believe the financial analysis will prove out in the long term. This means that this stock is trading temprorarily higher based on sentiment? Earnings estimates are higher, means they must have found more resources than we originally thought, right? If not, I don't get it.

Max
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