Look for Coral Gold (TSXV: CLH) to reach at least $0.76 per share this month, regardless of where gold finishes the month. NIA just discovered a transaction that occurred on February 21, 2019 between the world's most successful gold royalty company Franco-Nevada (TSX: FNV) and Marathon Gold (TSX: MOZ) - and we consider this to be a perfect comparison for determining where CLH will likely be trading by the end of September!
On February 21, 2019, FNV acquired a 2% NSR royalty in MOZ's Valentine Lake gold property for CAD$18 million.
MOZ just completed a PEA for Valentine Lake, which estimates that it will produce 225,100 oz of gold per year over 12 years for 2.7 million oz of recoverable gold. Valentine Lake's recoverable gold resource is exactly the same size as the gold resource defined by CLH at the Robertson Gold project in its Robertson PEA released in 2012! When gold breaks $1,800 per oz, CLH's NSR royalty in Robertson will be worth 2% to match FNV's NSR royalty in Valentine Lake. By the time Robertson and Valentine Lake enter production, gold will likely be north of $2,000 per oz and CLH's royalty will grow to a value of 2.25%!
MOZ and Nevada Gold Mines are currently conducting in-fill drilling at Valentine Lake and Robertson, respectively. Both companies will release Pre-Feasibility Studies in 2020 and they will both include updated gold resource estimates!
Based on FNV paying CAD$18 million for their 2% NSR royalty in Valentine Lake, CLH is likely to rapidly rise to an enterprise value of at least CAD$18 million by the end of September! Including CLH's CAD$18.22 million cash position, CLH will likely finish this month with a market cap of at least CAD$36.22 million, which means CLH will likely finish September trading at $0.76 per share or higher! CLH only has 47.7 million shares outstanding and on August 28th CLH announced a HUGE share buyback of up to 2,950,485 shares!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.