RE: RE: Claude Ranked Among Most Undervalued Gold
"There's a reason why Claude is ranked among most undervalued gold stocks.
All one has to do is look at a 20 month chart and do due diligence to see why."
I may have taken a vacation to the dark side but I do not live in the dark ages!
The author of the following posted article said something that the market has not recognized let alone even acknowledge. In short, its the growing resource base. More importantly, and as the author pointed out, it's CRJ's ability to grow the resource base.
The next 20 months will determine if CRJ can grow production and reduce costs at Seabee. In addition, the scoping study on Madsen and the PEA on Amisk will shed some light on these properties with respect to capital investment and potential returns (IRR) to bring these properties into production. Absent from the equation, however, is that CRJ has over 4 million ounces of gold in the ground.
Unlike some JR's who have a multiple million ounce resource who most likely have a high cap ex to bring the same into production and more times than not, are situated in an area that hosts greater geo political risk. CRJ has "3" properties of 1m+ ounces of gold. One is in production and just underwent a $30M revamp, the other two are pending studies to assist in any production decisions of the same. One has infrastructure already in place and the other is to be an open pit operation in a well established mining district. Honestly, and even as the most hardened skeptic must admit, CRJ's future never looked brighter.
Question:
How many shares of CRJ does it take to own 1 ounce of gold in the ground?
#2 Claude Resources
Another great Canadian mining company that I feel is undervalued is Claude Resources. They are more undervalued based on their gold ounces in the ground than they are their earnings but I think they have huge upside potential regardless.
Analsysts consensus earnings estimates for Claude Resources in 2013 is .11 cents per share. With their current share price of just .53 cents, this gives them a forward P/E of just 4.8!
As with Brigus, Claude has seen a good amount of insider buying during the past year. Presumably, insiders think the stock is undervalued and have been accumulating as they feel it will increase in price. The x's below represent when an insider bought shares:
But the real reason I like Claude Resources is their proven record of expanding their resource base. This Canadian Junior Mining Company has a total gold resource of over 4 million ounces - up from just 806K ounces in 2008! They are very undervalued.