Early in the morning on August 1, 2019, NIA published an exclusive report about how the #1 largest gaining stock since 1991 was not Apple (AAPL) like most investors would assume. There were a total of 30 stocks that outperformed AAPL on a total return basis. Although AAPL achieved total returns over 28 years of 13,478%, the #1 largest gaining stock had actually achieved total returns that were 34.8X more than AAPL and that company was: Royal Gold (RGLD).
NIA pointed out how a $10,000 investment into RGLD on December 2, 1991 would have been worth $46,913,386 on August 1, 2019. NIA showed how RGLD's total return of 469,034% caused RGLD's market cap to rise from $300,000 to $7,500,000,000!
NIA explained that RGLD's revenues increased by 4,780% vs. its number of employees rising only 109.10%, allowing RGLD's free cash flow to increase by 8,730%! NIA highlighted how in 2018, RGLD generated free cash flow of $317,010,000 with only 23 employees, giving RGLD free cash flow of $13,783,000 per employee! NIA made it clear that this kind of financial performance is only possible for gold royalty companies!
NIA said at the end of its alert, "NIA believes it has discovered a company that could become the next RGLD! This company is extremely similar to RGLD in its earlier days just prior to it experiencing its largest percentage gains in history! We believe this company is on the cusp of seeing a major revaluation to the upside and NIA is planning to announce its symbol very soon!"
At 12:49PMEDT that same day, NIA sent out a follow-up alert entitled, "Most Profitable Way to Play Gold". In this alert, NIA showed how between October 23, 2008 and August 1, 2019, the three largest gold/silver royalty & streaming companies (FNV, WPM, and RGLD) achieved an average total return of 716.77% vs. the two largest gold mining companies (Newmont and Barrick) achieving an average total return of 48.03%. This meant that gold/silver royalty & streaming companies have performed 14.92X better than gold/silver mining companies!
NIA concluded this follow-up alert by saying, "NIA believes that it has discovered the #1 most perfectly positioned gold/silver royalty & streaming opportunity in the market today and is getting ready to announce it!" Less than three hours later, NIA officially announced what it truly believed would become its #1 biggest gold royalty stock suggestion in history!
At 3:34PMEDT that day (August 1, 2019), NIA announced Ely Gold Royalties (TSXV: ELY) at $0.30 per share as its #1 Gold Royalty Stock Suggestion. NIA explained that ELY has the, "#1 strongest and most diversified portfolio of gold/silver royalties in all of Nevada with countless HUGE catalysts set to occur in the near-future!"
ELY immediately rallied $0.07 or 21.31% into the close to finish at $0.37 per share. On the U.S. OTC market ELYGF traded a record volume day of 794,647 shares with nearly all of its volume trading during the final 26 minutes! On August 6, 2019, ELY hit a short-term peak of $0.47 per share for an initial gain of 56.67% from NIA's suggestion price!
On August 7, 2019, NIA published a report calculating the total fair value of ELY's royalties and other assets. NIA's report calculated that ELY deserved to trade with a market cap of between CAD$122.14 million and CAD$145.18 million, which would equal a share price of between $1.22 and $1.45. This was NOT a target price for ELY but just a way to help educate NIA members about ELY's assets and why we truly believed that ELY ten months ago had greater short-term upside potential than any other gold stock.
During the following months, NIA would continuously stress that ELY was a major steal at any share price that was below the share price of Wallbridge Mining (TSX: WM). ELY's most valuable asset is their 2% NSR royalty in WM's Fenelon project. As a rule of thumb we value royalties at a level that is 10X higher than equity in the same mining project due to the fact that royalty owners are not responsible for a mining project's capital and operating expenditures. Because WM had 5X more shares outstanding than ELY, NIA estimated that ELY deserved to trade at the same share price as WM based only on the value of ELY's 2% royalty in WM's Fenelon project. Considering that ELY owned many additional royalties, NIA stressed that ELY would soon trade at a far higher share price than WM.
On the morning of October 22, 2019, NIA predicted that ELY was about to rally big from its then share price of $0.34 after WM announced its strongest gold intercept in history! Over the following week, ELY gained by 38.24% to reach another short-term peak of $0.47 per share, which we officially declared as ELY's key breakout point. After another failed attempt at breaking through $0.47 per share on January 3rd, ELY finally surpassed its key breakout point on January 22nd and exploded over the following month to a February 19th high of $1.02 per share, where ELY finally reached the same share price as WM.
Over the month that followed, WM crashed from $1.02 per share down to a March 16th bottom of $0.325 per share vs. ELY dipping from $1.02 per share down to a March 16th bottom of $0.47 per share! ELY's major resistance level turned into a major support level that allowed ELY to bottom 45% higher than WM!
On May 19th, ELY surpassed its latest key breakout point of $1.02 per share and immediately exploded to a May 20th high of $1.22 per share (the exact low end of NIA's August 7th ELY fair value calculation). On this past Thursday, May 28th, ELY hit a high of $1.45 per share (the exact high end of NIA's August 7th ELY fair value calculation)
After gaining by 11.81% on Friday to finish last week at $1.61 per share, ELY gained another 18% on Monday to close at a new all-time high of $1.90 per share! Amazingly, WM declined by 9.63% on Monday to close at $1.21 per share! ELY is now trading 55.74% above the share price of WM, exactly like NIA predicted we would eventually see!
ELY by closing Monday up to a new all-time high of $1.90 per share has gained by 533.33% since NIA's initial suggestion at $0.30 per share ten months ago! Ever since NIA's initial ELY announcement ten months ago it has NEVER once closed below NIA's initial suggestion price of $0.30 per share! NIA was the very first major organization to discover and announce what has become the world's #1 largest gaining gold royalty stock of the last ten months!
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. NIA was previously compensated by ELY USD$30,000 cash for a six-month marketing contract which has since expired. 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.