Gold cycle. Reserve growth. I am back in long on CNL expecting that the gold price is on the move and attention will move away from overbought cannabis and Bitcoin hype into sane and substantial stories.
With a market cap of $650 M and real assets to back it up, CNL sure looks stupidly cheap.
The market cycle for gold is coming into favor and these guys are under no pressure to do anything else but increase the reserves. And that is going better than expected.
The de-riskng has taken pace, there is a solid strategic partner, and this is THE #1 ready to go into production property in the world.
My research has been telling me that gold exploration has slowed. Respected players like Pierre Lassonde, chairman of Franco-Nevada said he’s not sure how the world will keep up the pace of discovery of gold deposits. Companies have not put anywhere near enough money into research, tech development, exploration and processing. Bullish for gold prices.
You can see by the charts that the GLD will test the past 52 week high of $128 (now at $125) and hopefully will blow through. This will bring in momentum players, assuming it happens.
I can see $1400 - $1500 /oz gold attained in 2018 and nobody would bat an unleash. Investors will argue that a 15% gain is still way under the % return of crypto vapor. So what's the big deal.
Keep on drillin'... that's my wish for CNL in 2018. Let the proven reserve value grow... let gold run... get the stock to $4.75 - $5.25 then sell the whole thing to their tier one partner for $7 - $9.
Fingers crossed on all that.