Gold gained by $22.04 on Friday to a new 8-month high of $1,302.91 per ounce! From its short-term bottom set on August 16, 2018, of $1,160.37 per ounce, gold has gained by $142.54 per ounce!
On Thursday afternoon, NIA alerted its members about Fiore Gold (TSXV: F)'s unbelievable fiscal 4Q 2018 and year-end results. Fiore was trading for $0.335 at the time of NIA's update and after closing Thursday up to $0.35 per share, Fiore gained another $0.03 on Friday to finish the week at $0.38 per share!
Prior to Friday, gold last settled above $1,300 per ounce back on June 14, 2018. At that time, Fiore Gold (TSXV: F) was trading for $0.55 per share. The company has had no dilution since then and it just reported unbelievably strong earnings results that surpassed our highest expectations!
Currently at $0.38 per share, Fiore Gold with 97,716,128 shares outstanding has a very low market cap of only CAD$37.132 million. With USD$6.167 million or CAD$8.224 million in cash and no debt, Fiore's current enterprise value is only CAD$28.897 million.
Including inventories of ore that Fiore Gold has already mined and placed on its leach pads, the company has total working capital of USD$18.12 million or CAD$24.16 million. If subtracted from Fiore's market cap, its business and huge gold reserves are currently being valued at an insanely low CAD$12.972 million.
Fiore Gold generated revenue in fiscal year 2018 of CAD$59.187 million and reported CAD$17.034 million in earnings from mining operations. Fiore is currently trading with an enterprise value of only 1.7X its earnings from mining operations! Including inventories of ore already mined and on its leach pads, Fiore Gold's business and gold reserves are being valued at only 0.762X its earnings from mining operations!
Fiore Gold (TSXV: F) has a 200-day moving average of $0.405 per share, which it could test as soon as Monday. As soon as Fiore surpasses its 200-day moving average of $0.405, we expect to see all investors who are currently following from the sidelines, rush to accumulate Fiore Gold shares as quickly as possible! In NIA's opinion, after Fiore successfully breaks through its 200-day moving average, it will rapidly rally back to $0.55 per share where it was trading the last time gold was at these levels!
Just like NIA predicted, all of Fiore Gold's resistance in late-2018 was due to tax loss selling. In 2019, Fiore hasn't traded a single share for less than $0.33 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.