TDV Update: As we estimated in December’s Mining & Exploration Monthly Report, at gold prices around $3k, GFI’s share price should be trading closer to $50, as per its net asset valuation. By consolidating ownership of Gruyere, Gold Fields net asset valuation will obviously increase, however this will be offset by share dilution. As such we maintain our price outlook, only we are becoming more bullish on our average gold price estimates for this year! At current prices, we calculate GFI’s share price to be closer to $60. Either way, the stock has more room to run from here. And that’s in the short term. With Salares ramping up, Gruyere consolidation forthcoming and a construction decision on Windfall fast approaching, GFI’s long-term growth outlook is solid.
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