There is more interest in base metals than gold right now. Copper, zinc and nickel are all up this year. A lot of the interest is coming in from two longer term demand factors: Electrification of Asia and electric vehicles, which will increase demand for all kinds of metals. He has a lot of exposure to lithium as a way to play electric vehicles. Demand is going to double.
It is a higher cost asset. It is more volatile. They have a cash flow profile that will drop in a couple of years. The stock is off while investors plan to come back to it in a couple of years. You are buying it for the cost of the infrastructure. He would prefer to hold it for two years. (Analysts’ target: $20.44).
You are getting fair value here. A mine they have been investing in is just coming on line. It is not overwhelming free cash flow. To break out of this range they need to take some action on their undeveloped asset.