Gold recently closed at its highest levels since mid-June. This strength comes after the dollar weakened due to a weaker than expected Q2 GDP report. The report was the first look at growth for the US, but its content was lacking.
- Lack of inventory restocking due to the record high shipping prices
- The Feds continue to refuse to increase interest rates
- GDP accelerated 6.5% vs 8.4% expected With the Fed continuing to refuse to increase interest rates, gold prices have seen consistent strength above $1800, which is excellent news for gold miners.
One of my favourites + one of my top performers is Sonoro Gold. I just watched an interview with BNN Bloomberg. They go over some highlights of the company.
- Located in Sonoro, Mexico, a historically high-grade gold production location
- Advanced-stage exploration/close to production. Proposed HLMO that will support 15,000 tpd (avg of 0.5g of gold per tonne)
- Currently extremely undervalued based on future production estimates
Watch the quick video here: https://www.bnnbloomberg.ca/investing/video/robert-mcwhirter-discusses-sonora-gold~2179636
Overall, $SGO is an excellent company with unique projects, a solid management team, and fantastic stock performance. They've well outperformed other junior mining companies over the past few months and with a market cap of $38M, $SGO is significantly undervalued.