Griffin Mining (GFM.L), mcap=£185m, price £1 vs £1.5

Pitch: Zinc miner in China posed to expand its production shortly as it has finally received a permit to extract ore from the adjacent zone. Earnings are expected to grow considerably after the company increases the mine rate to 2,000 tons of ore.

Valuation: At $1.30 per lb zinc prices, GFM.L earnings would be at 76p/share. At current zinc prices – at 130p/share. With 5.5x EBITDA on normalized earnings, the stock would be at GBP3.50-4.

Exp. gain: +150% to GBP3.50-4

Full GFM.L write-up (free guest account required):

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