PSAB and MDKA
PSAB (J Resources Asia Pasifik) is a gold mining company comparable to another gold peer MDKA (Merdeka Copper Gold). It currently produces 171,000 ounce of gold per annum.
While MDKA share is shooting up over recent months due to higher gold prices, PSAB share has not increased as much.
Looking into their latest Q3 financial reports and current market values:
| No | Accounts | PSAB | MDKA |
| 1 | Revenue | IDR 2.7 trillion | IDR 4.4 trillion |
| 2 | Gross Profit | IDR 1.1 trillion | IDR 2.3 trillion |
| 3 | Price / Book Value (PBV) | 1.2 | 6.3 |
| 4 | Current Market Capitalization | IDR 6 trillion | 55 trillion |
It is easy to say that PSAB is significantly undervalued compared to MDKA, which means potential upside for PSAB’s share price. Not to mention, there is more growth in the pipeline.
PSAB’s Growth Projects
- North Sulawesi (Blok Doup) gold mine, to be operational in H2 2021. This new mine will add 50,000 – 80,000 ounce of production capacity per annum.
- PSAB’s Joint Venture with MDKA for 4.3 million ounce gold concessions in Gorontalo Province (Sulawesi). PSAB’s share in the concession itself is estimated to be around 2 million ounce of resource.