If the company’s operations were flawless and the management executed everything without a hitch, the stock wouldn’t be trading at its current price, nor would we see the discounted price we see today. It’s due to Larry Radford’s missteps that I hold the number of shares I do today, and without those mistakes, the potential for significant returns wouldn’t be present.
Richard Young, the present CEO of Argonaut Gold, has a rich history in the gold mining industry spanning 30 years. He successfully elevated Teranga into a multi-billion dollar operation. I firmly believe he has the capability to achieve similar success once more. It’s also noteworthy that he has gathered an impressive team, with the majority of Argonaut Gold’s management being former Teranga members. Young has invested in 5.5 million shares and is currently facing a 50% unrealized loss. To turn this into a profit, he would need to raise the stock price back to 50 cents, which is a crucial aspect to consider.
The existing management team has performed to the best of their abilities. The initial pour took place in Q2’23, and by Q3’23, the Magino mine was commercially operational. If not for the extra expenses incurred in building the second phase of the Tailings Management Facility (TMF) and the third heap leach pad at Florida Canyon, the situation would have been different.
As I understand it, the full potential may not be realized until after the optimizations and expansion have been completed.
Finally, it’s worth noting that the market price exhibited a similar pattern in January 2016 before it surged to $4. The market price experienced a significant drop after the release of Magino’s pre-feasibility study, hit an all-time low, and then rapidly climbed to $4. I understand that not everyone values technical analysis, but we’re currently at some critical support levels. Gold appears poised to reach a new all-time high, and the company is gearing up to publish updated technical reports and drilling results. We might witness a trend akin to the stock price movement in 2016.