NIA's #1 ranked overall stock suggestion for 2019, Fiore Gold (TSXV: F), is a steal here at $0.48 per share. It recently hit a high of $0.60 per share for a gain of 160.87% from NIA's November 22nd suggestion at $0.23 per share. Look for Fiore to hit new highs within the next 2-3 weeks, with their fiscal 3Q 2019 financial results likely to be released on August 28th. We already know with 100% certainty that Fiore Gold's fiscal 3Q results will be extremely strong because the company announced on July 16th that it achieved record quarterly gold production in fiscal 3Q 2019 of 11,573 oz up 7.57% on a quarter-to-quarter basis from its previous record quarterly gold production achieved in fiscal 2Q 2019 of 10,759 oz and up 16.15% on a year-over-year basis from gold production of 9,964 oz in fiscal 3Q 2018, which was also a record breaking quarter at the time! Currently, Fiore has a market cap of only CAD$46.9 million or USD$35.34 million. Fiore has an extremely strong balance sheet with CAD$28.84 million or $0.30 per share in positive working capital and a very strong current ratio of 5.80. Fiore has CAD$52.76 million in shareholder equity, which means Fiore is trading for below its book value of $0.54 per share!
There are a total of 258 publicly traded companies actively mining and generating revenue from the production of either precious or base metals. Of these 258 companies, only 96 are trading for below book value. Of the 96 producers of precious/base metals that are trading below book value, only 14 are debt free. Of these 14 companies, only 6 reported positive revenue growth in its most recent quarter on a year-over-year basis. Of these 6 companies, only Fiore Gold (TSXV: F) generated positive free cash flow on a trailing twelve month basis! If we remove the requirement of a price/book value ratio of below 1, there are only 7 revenue generating, debt free, precious/base metal mining companies (besides Fiore Gold) with positive revenue growth and positive free cash flow. These 7 companies are currently trading with a median price/book value ratio of 3.12. A price/book value ratio of 3.12 would value Fiore Gold at $1.68 per share for a gain of exactly 250% from its current price of only $0.48 per share!
NIA's latest stock suggestion Ely Gold Royalties (TSXV: ELY) also appears ready for another HUGE run. NIA initially suggested ELY on August 1st at $0.30 per share and it made a rapid gain of 56.67% to a high on August 6th of $0.47 per share. ELY here at $0.345 per share is most likely at or near a perfect entry point... We just found out on Friday that McEwen Mining (TSX: MUX) an $847.77 million market cap company has acquired the rights to Gold Canyon, a property owned by ELY that it initially optioned to a small explorer Fremont Gold. MUX will be required to pay ELY a total of CAD$846,345 in cash between January 18, 2020 and January 18, 2023. ELY will retain a 2% NSR royalty in the project, but MUX can buy the royalty down to 1% by paying ELY CAD$3,982,800 cash.
Gold Canyon is located in the middle of and completely surrounded by MUX's brand new Gold Bar mine in Nevada, which recently entered production and is projected to produce 65,000 oz of gold per year. Gold Canyon produced approximately 41,000 oz of gold from 1990-1994 and is less than 1km northwest of MUX's Gold Ridge Pit, one of four deposits that comprise MUX's Gold Bar mine. MUX could quickly add Gold Canyon to their current Gold Bar mining operations to extend its mine life and if they produce just 10,000 oz of gold per year from Gold Canyon it will earn ELY annual royalties of CAD$400,000! This deal could quickly add $6-$8 million to ELY's market cap!
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 has received compensation from ELY of USD$30,000 cash for a six-month marketing contract. 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.