Recently billionaire Eric Sprott added a multi-million dollar vote of confidence to that of Agnico Eagle and Kinross in the Yukon based amalgamation of all the projects of Shawn Ryan named White Gold Corp. (WGO:TSX.V; WHGOF:OTCMKTS). That now makes an even three entities that actually understand the magnitude of what White Gold has in their stable. That would be Eric, Kinross and Agnico Eagle. Few others get it.
The mining industry used to be populated by legends. A few exist today. One of the most interesting would have to be Shawn Ryan highlighted in various articles and magazines.
I was on a trip to the Yukon fifteen or so years ago when I met him. He was living with his partner in a trailer in Dawson. He was intent on staking half the Yukon and eventually pretty much succeeded. Later he did joint ventures with a number of juniors before he realized that dealing with dozens of juniors was at a minimum, painful.
So he put together a package of 33 projects covering over 420,000 ha with an existing 1.8 million ounce resource. You would think the market would jump at the opportunity to get a piece of such valuable real estate in probably the best country in the world to explore and produce gold. You would be thinking wrong.
I've been to hundreds of projects including half a dozen of his projects. I can't keep track of the names much less the potential. Investors pretty much share my ignorance. How do you cope with trying to understand 33 different projects and still make an intelligent investing decision? The answer is simple. You don't.
But you can try looking at the company in different ways that will tell you some idea of the potential and wisdom of investing.
In US pesos, White Gold has a market cap of about $75 million. With about 1.8 million ounces of gold that means an investor today is paying about $42 an ounce in the ground. All those ounces are found in only two of the 33 individual properties. So pay $42 an ounce for the shares and you get 31 more projects for free.
Eric Sprott gets it.
Kinross gets it.
Agnico Eagle gets it.
You don't have to be as knowledgeable as they are. You can ride on their expertise and experience in the Yukon. Kinross and Agnico Eagle each own just over 17% of the company. They have the right to maintain their level of ownership and when Eric Sprott expressed an interest in investing, they bellied up to the bar to keep their same participation.
Management and I both agree investors don't get it. I figure that with what they already have in a resource and the level of exploration being done (and fully funded by Kinross and Agnico Eagle) the shares should be a couple of hundred percent higher. So management of White Gold is doing something brilliant. They are telling their story via a webinar taking place on Thursday May 28th at 1 PM ET (10 AM PT).
If you are an existing shareholder, sign up here.
If you think you might want to be a shareholder, sign up here.
If you just want to listen to one of the most interesting guys in mining, sign up here.
Based on the torrent of money the Fed had dumped into the US financial system I'm pretty much convinced we are going to have major deflation in all the markets that bubbled and eventually hyperinflation in the dollar. If I'm right that will drive prices of the metals far higher than we can imagine today.
Inflation is what you get when a country such as Japan prints a lot of money. Hyperinflation is what happens when people lose confidence in their currency. With tens of millions of Americans having joined the ranks of the perhaps permanently unemployed I doubt many are going to trust anything coming from the government except free money. And since there is no free lunch and the government cannot possible print enough to pay off the $250 trillion in debt in the world, one day gold and silver will hit prices we cannot even imagine today. Because when you talk about the price of anything you are talking about two different things. One is the commodity and the other is the currency.
If you want to imagine what might happen, think of quoting gold in Zimbabwe dollars. It's coming our way.
White Gold is an advertiser and I bought shares in the open market. Do your own due diligence.
White Gold Corp
WGO-V $0.84 (May 22, 2020)
WHGOF-OTCBB 124.7 million shares
White Gold website
Bob Moriarty
President: 321gold
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Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
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