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Assessing Aftermath Silver (OTCPK:AAGF.F) Valuation After Major Berenguela Resource Upgrade and Project De‑Risking

Simply Wall St · 1d ago

Aftermath Silver (OTCPK:AAGF.F) just updated the Mineral Resource Estimate at its Berenguela project in southern Peru, confirming a meaningful increase in silver, copper, and manganese resources that lowers geological risk and supports development plans.

See our latest analysis for Aftermath Silver.

The resource upgrade and early completion of payments for full Berenguela ownership have clearly caught the market’s eye. Aftermath’s share price has returned 25.78% over the past month and a standout 86.78% year to date, while the 3-year total shareholder return of 159.66% suggests momentum and conviction have been building over time.

If this kind of early-stage re-rating appeals to you, it could be a good moment to see what else is brewing among fast growing stocks with high insider ownership.

With Berenguela now fully owned, a larger resource base defined, and the share price already surging, the key question is whether investors are still getting in early on long term upside or if the market is already pricing in future growth.

Price to Book of 7.8x: Is It Justified?

At a last close of $0.63, Aftermath Silver trades on a price to book ratio of 7.8 times, which looks expensive against its US metals and mining peers.

The price to book multiple compares the company’s market value to the accounting value of its net assets, a common yardstick for early stage resource developers with little or no revenue. For Aftermath Silver, the combination of no meaningful sales and ongoing losses suggests investors are paying a premium today for the future development potential of its Chilean and Peruvian projects rather than current profitability.

In that context, the 7.8 times price to book looks modest relative to a peer group average of 13.7 times, which suggests that the market is not applying the very richest exploration stage premium here. However, when you zoom out to the broader US metals and mining industry, where the average price to book is just 2.2 times, Aftermath’s valuation stands out as steep, which indicates that much of the Berenguela upside is already being reflected in the share price.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Book of 7.8x (OVERVALUED)

However, lingering exploration risk, zero revenues and ongoing losses mean that any setback at Berenguela or Chilean projects could rapidly deflate today’s optimistic valuation.

Find out about the key risks to this Aftermath Silver narrative.

Build Your Own Aftermath Silver Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view of Aftermath Silver in just a few minutes: Do it your way.

A great starting point for your Aftermath Silver research is our analysis highlighting 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.