NAI says MXL is going to be conservatively $1.79 next year!! You are receiving this message because you signed up for email alerts from inflation.us. If you no longer wish to receive these messages, please click here to unsubscribe. One month ago, NIA announced MX Gold (TSXV: MXL) at $0.225 as its new gold stock suggestion. NIA explained how MXL only has 133.38 million shares outstanding and had a market cap at $0.225 of only CAD$30 million, which is the lowest market cap that NIA has ever seen for a near-term gold producer that already owns a modern turnkey mill and has a huge gold resource with very high gold grades!
MXL recently acquired the award winning Max Molybdenum Mine and Mill, which has over CAD$80 million invested into it by its previous owner. MXL acquired it very cheaply because molybdenum prices have collapsedin recent years. MXL has no intention of producing any molybdenum - MXL acquired the Max Mine and Mill for the purpose of consolidating it with its high grade Willa Gold Project located only 135 km away. By doing so, MXL will be able to bring its Willa Gold Project into production this year for only a fraction of the estimated cost to build a new gold mill at the Willa site.
MXL's Willa Gold Project has a measured/indicated gold resource of 758,000 tonnes grading 6.67 g/t - and MXL will be trucking its ore to the Max Mill. MXL has just finished retrofitting the Max Mill and has all of the necessary permits in place to begin production - with initial projected throughput of 450 tonnes per day. MXL plans to expand throughput in the future to 1,000 tonnes per day and has already completed 90% of the expansion work.
NIA projects for MXL to produce 25,000 oz of gold in 2017, with very low all-in sustaining costs of only USD$600 per oz. With gold at USD$1,337 per oz, if MXL successfully executes its strategy - the company could earn an operating profit next year of CAD$23.89 million - and a conservative multiple of 10 would value MXL at $1.79 per share!
After NIA initially suggested MXL one month ago at $0.225 per share, it published an exclusive MXL technical analysis report - showing how the stock had formed a bullish wedge pattern with a key breakout point at the time of $0.28 per share. In recent weeks as MXL's bullish wedge pattern trendlines have converged - its key breakout point declined to $0.27. On Tuesday of last week, MXL finally surpassed its key breakout point of $0.27 and closed at $0.28.
As NIA expected, MXL began to explode in the following days - rising $0.05 or 17.86% to $0.33 on Wednesday, rising $0.015 or 4.54% to $0.345 on Thursday, and rising $0.02 or 5.8% to $0.365 on Friday. MXL is already up 62.22% from NIA's suggestion one month ago! MXL has achieved more than 10X the gains of the HUI Gold Miner Index, which is up only 6.14% during this same time period!