Post by
templetooth2 on Apr 09, 2021 8:26pm
Bumping Along Near High
Re comments about big volume, this is about the only gold stock that is within spitting distance of its highs last summer. Consequently, lots of profit takers or people selling to break even after buying at those highs. Most other producers look something like Equinox: a recent move from 10 to 11 but a long way from August high of 17.
It's also possible that some investors are a little disappointed at the lack of cash accumulated in the most recent quarter.
Meanwhile, I would urge everyone to consider where this company will be in 2 1/4 years, say Bastille Day 2023. Let's hope that gold is in the $2000 vicinity then. Seguela will have been in production for 6 montths by that time, and Roxgold on its way to producing 70 cents of annual cash flow (90 cents Cdn). Give that a multiple of 6 to get a very achievable target price of $5.40.
From a cost of $1.75 that is a profit of 208%. If you wait for a bit and the stock offers you the opportunity of buying again at $1.60, the profit is 237%. If you put $20,000 into this stock at $1.60 you have a realistic shot it'll be worth $67,400. I've only ever walked by The Ritz in Paris. Guess what?