In this week’s Stockhouse Gold Report, my goal is to remind you of the clear line between speculation and investment that exists between gold stocks that have only samples and intercepts to show off to the market, and those more advanced along the mining lifecycle, which can point to a resource estimate or an economic study when speaking about a project’s valuation.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
A miner that embodies this thesis rather well is Cerrado Gold (TSXV:CERT), whose global operations combine growing production with a polymetallic portfolio from preliminary economic assessment (PEA) to feasibility study.
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By the ounce
At the time of writing on Wednesday, the price of gold was US$4,340.19, according to data from ADVFN, down from US$4,626.98 per ounce in our August 26th report.
The precious metal fell in response to Federal Reserve Chair, Kevin Warsh, commenting at the Jackson Hole economic conference that his central bank has “work to do” to corral inflation, spurring broader market sentiment about an imminent interest rate hike.
This week in gold
FireFly Metals (TSX:FFM) recently advanced on its path towards shareholder value with a PEA for its Green Bay copper and gold project in Newfoundland. The assessment substantiates a post-tax net present value (7 per cent discount rate) of at least A$2.2 billion, representing production of at least 807,000 ounces of gold, 909,000 tons of copper and 7.2 million ounces of silver, with data-driven room for exponential growth.
A newly listed junior miner that knows what it’s working with is Centauri Minerals (TSXV:CENT), whose strategically located, more than 3-million-ounce Rio Grande project in Argentina will soon be drilled for the first time since 2013.
Our closer is Fredonia Mining (TSXV:FRED), another Argentinian junior, which came through with a PEA for its royally named El Dorado Monserrat gold and silver project, laying out a case for a US$1.5 billion post-tax net present value (10 per cent discount rate), representing 146,000 ounces of annual gold-equivalent production over a more than 17-year mine life. The stock, meanwhile, trades at a measly C$58.37 million market cap.
Top trending gold stocks
- New Found Gold (TSXV:NFG) | 15,400+ views.
- West Red Lake Gold Mines (TSXV:WRLG) | 8,400+ views.
- Tudor Gold (TSXV:TUD) | 6,700+ views.
- Monument Mining (TSXV:MMY) | 5,100+ views.
- NorthIsle Copper and Gold (TSXV:NCX) | 3,000+ views.
- Freegold (TSX:FVL) | 2,600+ views.
Join the discussion: Find out what investors are saying about the mining stocks in this week’s Gold Report on Stockhouse’s stock forums and message boards.
