Polyus Gold
This week on the Intelligent Investing Podcast, I sat down with Jeremy Raper. One of the companies we discussed was a company called Polyus Gold.
Valuation
The company trades at 7x sustainable FCF at today’s gold prices. It’s the cheapest large cap gold company in the world. They also have the best assets in the world. They have a nice growth runway as the company could add 50% to their production profile within the next five to six years. If the price of gold goes up to around 2,000, this investment could be an absolute home run. However, if it doesn’t, shareholders get paid a 7% dividend. Possible to make a respectable high single digit/low double digit even if the price of gold doesn’t go up.
You can listen to the full The Intelligent Investing Podcast episode, here.