Keeping the faith
We are moving toward crazy cheap territory with this stock. Sure, there will likely be more bad news if the gold price heads lower or stays at current levels for an extended period. But the current extreme pessimism seems a bit overdone -- especially for a company with no debt and plenty of cash on its balance sheet. Consider all the recent positive pieces of news that have been completely ignored by the market:
- Big rebound in Q3 production at Aurizona and Santa Elena.
- True Gold releases North Kao PEA, expanding resources of Karma project
- Mutiny Gold merges with Doray to help advance the Deflector project
- Solitario releases updated feasibility study and says it is shopping around for financing to advance the Mt Hamilton Project (I'd be very surprised if we don't get a stream on this)
- Luna Gold is looking for a buyer (Yes, there could be more pain to come on the Luna front, but a buyout by a larger player would be a huge positive).
Add to the above a bunch of potentially very valuable call options like the Entree Gold stream in Mongolia and the current share price looks like a steal if you're willing to sit on this for 5 years.