Gascoyne Resources (GCY:AU), developing gold assets in Western Australia, has been classified as a Phase II company and rated ‘3+’ on the five point PortfolioDirect rating scale. A sevenfold change in the Gascoyne Resources share price dating from the beginning of 2016 exceeded the increase in the ASX All Ordinaries gold index by over 500 percentage points. This strong endorsement by the market of the company’s underlying value proposition leaves its current market value within 5% of its assessed value and with reduced scope for further near term price appreciation. The PortfolioDirect modelling implies a cash flow result equivalent to buying a bond with an annual yield of slightly over 10%. The PortfolioDirect rating analysis concludes that Gascoyne Resources is fairly priced presently but displays the potential for sufficient positive value momentum over the coming three years to warrant an overall risk adjusted quality rating toward the upper end of the range of feasible outcomes with potential for a ratings upgrade as current plans are progressed. A report has been published on Bloomberg and Thomson Reuters.
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