Fiore Gold (TSXV: F) currently has total shareholder equity on its balance sheet of USD$36.227 million or CAD$48.66 million, which gives Fiore an official current book value of $0.50 per share!
Over the last nine months, Fiore's shareholder equity has increased by USD$2.141 million or CAD$2.876 million without any dilution - due to Fiore earning HUGE profits from its Pan mining operations! It is almost unheard of for a company that is rapidly increasing its shareholder equity to be trading for below book value!
Fiore's book value of $0.50 per share doesn't even begin to reflect the true value of its producing Pan Gold Mine. The fact is, Fiore's Pan Gold Mine is only adding approximately USD$5 million or CAD$6.62 million to its shareholder equity. Fiore's balance sheet is based on the price that it paid to acquire the Pan Gold Mine in bankruptcy court, when Fiore was the ONLY BIDDER and successfuly stole its Pan Gold Mine assets for pennies on the dollar!
NIA has created a must see chart showing the real value of the Pan Gold Mine based on the historical balance sheet of its previous owner Midway Gold. As Midway Gold developed the Pan Gold Mine to bring it into production, Pan's asset value on Midway Gold's balance sheet increased from CAD$35.66 million in 1Q 2012 up to CAD$160.83 million in 1Q 2015 (and this includes depreciation)!
NIA considers CAD$160.83 million to be the real value of Fiore's Pan Gold Mine. If Fiore's balance sheet valued the Pan Gold Mine at CAD$160.83 million to match the 1Q 2015 balance sheet of its previous owner, Fiore's book value would actually be $2.10 per share or 4.2X higher than its current book value of $0.50 per share!
Gold mining stocks are beginning to explode this afternoon! In NIA's opinion, this is our last opportunity to accumulate Fiore for below $0.50 per share.
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.