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Letter to Ovoca Gold Directors regarding lack of progress and share price performance.

I previously tipped Ovoca Gold in 2016 due to the extraordinary discount of its liquid assets vs. its market capitalisation, you can read the piece here. A number of shareholders, both current and past have since contacted me to express their disappointment in management, more specifically management’s lack of engagement with shareholders and consequently a share price languishing at a steep discount to fair value. During the same period the disconnect between these liquid assets has widened further, based on my calculations the market’s valuation is now just 1/3rd of the total liquid assets, i.e. £7m versus combined cash and shares in Polymetal of £19.6m.


OVOCA GOLD – Biggest discount to liquid assets on AIM?

Ovoca Gold caught my eye recently when I was cruising for new stock ideas. I came across Ovoca through applying a filter Enterprise Value < 50% Market Capitalisation (MC). Enterprise Value (EV) looks at Market Capitalisation and then adds debt and subtracts cash. EV is therefore the true market value of a business. An EV 50% lower than MC normally implies a company without debt and holding a large balance of cash…