{"id":713,"date":"2025-05-16T18:18:00","date_gmt":"2025-05-16T22:18:00","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=713"},"modified":"2025-05-17T02:08:13","modified_gmt":"2025-05-17T06:08:13","slug":"average-gold-miner-trades-for-14-76x-free-cash-flow","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/average-gold-miner-trades-for-14-76x-free-cash-flow\/","title":{"rendered":"Average Gold Miner Trades for 14.76x Free Cash Flow"},"content":{"rendered":"\n

The average<\/strong><\/span> gold miner<\/strong><\/span> is currently trading for 14.76x<\/strong><\/span> their 1Q 2025 quarterly free cash flow per share annualized<\/span><\/strong>.<\/span><\/span><\/p>\n\n

Contango ORE (CTGO)'s 1Q 2025 quarterly free cash flow per share<\/strong> of $2.36<\/strong><\/span> on an annualized<\/strong><\/span> basis would be $9.44<\/strong><\/span> and the industry average multiple<\/span><\/strong> of 14.76x<\/strong><\/span> would value CTGO<\/strong> at $139.33 per share<\/strong>.<\/span><\/span><\/p>\n\n

Over the last three quarters, CTGO<\/strong> has earned<\/strong><\/span> total free cash flow per share<\/strong> of $2.95<\/strong><\/span>, which would annualize<\/strong><\/span> out to $3.93<\/strong><\/span> and the same multiple<\/span><\/strong> of 14.76x<\/strong><\/span> would value CTGO<\/strong> at $58 per share<\/strong>.<\/span><\/span><\/p>\n\n

Keep in mind, gold<\/strong><\/span> was much lower<\/strong><\/span> in 3Q 2024<\/strong> and 4Q 2024<\/strong> than in 1Q 2025<\/strong>. So far in 2Q 2025<\/strong>, gold<\/strong><\/span> has averaged<\/strong><\/span> a higher<\/span> price<\/strong> than in 1Q 2025<\/strong>.<\/span><\/span><\/p>\n\n

CTGO<\/strong> has only 12 employees<\/strong>, which makes it similar<\/strong><\/span> to a gold royalty<\/strong><\/span> company<\/strong>, and gold royalty<\/span> companies<\/strong> typically trade at premium multiples<\/strong><\/span>.<\/span><\/span><\/p>\n\n

Wheaton Precious Metals (WPM)<\/strong> is trading for 47.38x<\/strong><\/span> its 1Q 2025 quarterly free cash flow per share annualized<\/span><\/strong>!<\/span><\/span><\/p>\n\n

Royal Gold (RGLD)<\/strong> is trading for 35.77x<\/strong><\/span> its 1Q 2025 quarterly free cash flow per share annualized<\/span><\/strong>!<\/span><\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from CTGO of US$30,000 cash for a three-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.<\/em><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The average gold miner is currently trading for 14.76x their 1Q 2025 quarterly free cash flow per share annualized. Contango ORE (CTGO)'s 1Q 2025 quarterly free cash flow per share of $2.36 on an annualized basis would be $9.44 and the industry average multiple of 14.76x would value CTGO at $139.33 per share. Over the […]<\/p>\n","protected":false},"author":1,"featured_media":595,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[47,9,54,52],"class_list":["post-713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-ctgo","tag-gold","tag-rgld","tag-wpm"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=713"}],"version-history":[{"count":3,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/713\/revisions"}],"predecessor-version":[{"id":723,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/713\/revisions\/723"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/595"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}