NIA's #1 overall favorite stock suggestion in the entire market: Fiore Gold (TSX Venture: F). Gold is currently up another $8.87 today to $1,350.83 per oz and is now only 1% away from its most important key breakout point in history of $1,365 per oz! When gold breaks $1,365 per oz, gold stocks will immediately begin to reprice to the upside beginning with producing gold miners!
If a gold producer meets any of the following criteria, it is likely to rapidly reprice higher with short-term triple/quadruple digit gains: 1) Profitable with Positive Free Cash Flow. 2) Current gold production at record levels. 3) Gold production will continue reaching new record levels in the upcoming quarters. 4) Strong Balance Sheet (Debt Free). 5) Major extremely positive catalysts scheduled to take place within the next 2-3 weeks. 6) Strong management/board with proven track record of success (multiple past exits especially if any past gold mining industry exits were worth billions of dollars). 7) Currently trading with extremely low valuation multiples especially if enterprise value/operating cash flow ratio is among the lowest in gold mining industry.
Fiore Gold currently MEETS ALL SEVEN of the criteria above! Most producing gold miners meet NONE of the criteria above! No other producing gold miner besides Fiore Gold meets all seven!
Fiore Gold has consistently been NIA's #1 overall favorite stock suggestion since November 22, 2018 when NIA initially suggested it at $0.23 per share. Although Fiore Gold is currently up by 52.17% from NIA's initial suggestion price, Fiore is actually much more undervalued today at $0.35 per share than it was on November 22nd at $0.23 per share, because the company's fundamentals have been rapidly improving by a much larger percentage than its share price!
In Fiore Gold's fiscal year 2018 ending September 30, 2018 the company produced 34,297 oz of gold and generated revenue of CAD$56.96 million, EBITDA of CAD$9.588 million, operating income of CAD$5.996 million, and net income of CAD$1.446 million!
In Fiore Gold's most recent quarter of 2Q 2019 (ending March 31, 2019):
It produced a record 10,759 oz of gold or 43,036 oz annualized for growth of 25.48% above fiscal 2018 full year production of 34,297 oz!
It generated record revenue of CAD$18.63 million or CAD$74.52 million annualized for growth of 30.83% above fiscal 2018 full year revenue of CAD$56.96 million!
It generated record EBITDA of CAD$4.974 million or CAD$19.896 million annualized for growth of 107.5% above fiscal 2018 full year EBITDA of CAD$9.588 million!
It generated record operating income of CAD$3.391 million or CAD$13.564 million annualized for growth of 126.22% above fiscal 2018 full year operating income of CAD$5.996 million!
It generated record net income of CAD$2.653 million or CAD$10.612 million annualized for growth of 633.89% above fiscal 2018 full year net income of CAD$1.446 million!
Back on November 22nd when NIA announced Fiore Gold at $0.23 per share as its #1 stock suggestion for 2019, it had a market cap of CAD$22.475 million with cash of CAD$7.965 million and no debt. This gave Fiore Gold an enterprise value of CAD$14.51 million. At the time, Fiore Gold had trailing twelve month operating cash flow of CAD$5.679 million for an enterprise value/operating cash flow ratio of only 2.56!
Fiore Gold today at $0.35 per share has a market cap of CAD$34.2 million. Since November 22nd, Fiore Gold's cash position has increased by 39.11% to CAD$11.08 million, giving it an enterprise value today of only CAD$23.12 million. Fiore Gold has trailing twelve month operating cash flow right now of CAD$10.54 million for an enterprise value/operating cash flow ratio of only 2.19!
Currently, a share price for Fiore Gold of $0.39 would be equivalent to NIA's November 22nd suggestion price of $0.23 per share, because at $0.39 per share Fiore Gold would have a market cap of CAD$38.11 million and enterprise value of CAD$27.03 million, which would give it an enterprise value/operating cash flow ratio of 2.56!
Of course, Fiore Gold definitely deserves a much higher enterprise value/operating cash flow ratio than 2.56. During the two weeks following NIA's initial Fiore Gold announcement, the stock rallied 84.78% to a December 7th high of $0.425 per share. At Fiore's December 7th high of $0.425, it had a market cap of CAD$41.531 million and enterprise value of CAD$33.566 million, giving it an enterprise value/operating cash flow ratio of 5.91.
Today, an enterprise value/operating cash flow ratio of 5.91 would value Fiore Gold at $0.75 per share! On a very conservative basis, look for Fiore Gold to reach $0.75 per share within the next 2-3 weeks for a gain of 114.29% from yesterday's closing price of $0.35 per share!
Fiore Gold hasn't seen any meaningful dilution in nearly two years! Fiore's last private placement/share issuance occurred in August 2017 when it raised CAD$17 million in proceeds for the issuance of 14.777 million shares, which valued the company at $1.15 per share. Prior to Fiore Gold's most recent private placement, the company closed on two private placements approximately one year earlier in August/September 2016, raising a total of CAD$16.2 million and issuing a total of 10.6 million shares. Fiore's 2016 private placements occurred at an average issuance price of $1.53 per share! All together, between August 2016 and August 2017, Fiore Gold raised total proceeds in 13 months of CAD$33.2 million by issuing a total of 25.377 million shares, for an overall average share issuance price of $1.31!
This means Fiore Gold's largest institutional shareholders invested at an average price that is 3.75X higher than yesterday's closing price of $0.35 per share! Fiore Gold's biggest catalyst in history will occur approximately two weeks from today! We will be discussing it in a major report to be released later today!
This afternoon, NIA will be releasing a report ranking its Top 5 favorite overall stock suggestions at this time! Fiore Gold will undoubtedly be ranked #1!
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.