NIA is excited to announce GoldMoney (TSX: XAU) or XAUMF on the U.S. OTCQB as its #3 overall pick for 2021. During the last Bitcoin boom, XAU made a run to over $8 per share. In 2021, we have a perfect storm for XAU developing between booming Bitcoin and gold prices.
Gold is up by $51.10 per oz today after surpassing its key breakout point and we believe XAU will become the #1 biggest gold play in the market because it is a rapidly growing digital gold company that allows people to own and transact in gold. This morning, NIA's President purchased 45,000 shares of XAU in the open market. He believes we could see XAU reach new all-time highs in 2021!
XAU has 75,040,980 shares outstanding (after repurchasing 3,000,000 shares last quarter) for a market cap at $2.54 per share of CAD$190,604,089. Between cash, cash equivalents, and short-term marketable securities XAU has a total cash position of CAD$29,936,341. What almost nobody realizes is... XAU also owns CAD$36,020,459 worth of precious metals (mainly gold) and gold is even better than cash! Therefore, between cash+gold XAU is sitting on CAD$65,956,800.
In addition, XAU owns CAD$24,478,845 in loans receivable that have practically no credit risk! CAD$10,517,265 of these loans receivable are a precious metals loan owed to XAU by Mene (TSXV: MENE) an associate company that XAU is the largest shareholder of owning 36.92% of MENE's shares outstanding. XAU has said that, "settlement of the receivable is not in doubt." The remaining CAD$13,961,580 in loans receivable are fiat currency loans to XAU's customers that are fully secured by London good delivery silver or gold bars pledged as collateral, over which XAU has first ranking. XAU earns interest of 2.37%-4.20% per annum on these nearly risk-free fully backed loans receivable. As XAU's fiat currency loans receivable reach maturity, XAU will be investing the proceeds into gold to further increase its corporate gold position!
XAU has total cash+gold+loans receivable of CAD$90,435,645 plus CAD$3,242,017 in other current assets with current liabilities of only CAD$4,493,088. This gives XAU a total of CAD$89,184,574 in net tangible assets! XAU's only debt is a CAD$998,381 mortgage loan payable!
Not included in XAU's CAD$89,184,574 in net tangible assets is their 90,312,055 shares of MENE, a rapidly growing publicly traded e-commerce business that was founded by Pablo Picasso's granddaughter! MENE is disrupting the jewelry industry with all of its jewelry being pure gold or pure platinum with the prices updating live as you shop based on the latest spot prices of gold and platinum. MENE tells you the exact gold/platinum value of each item and charges a transparent fee of 40% of the precious metal value. At any point in the future you can quickly and easily sell your Mene Jewelry back to MENE for its latest gold/platinum value minus a 10% fee.
MENE is trading for $0.66 per share. XAU's 90,312,055 MENE shares are currently worth CAD$59,605,956!
If we add together XAU's net tangible assets with the value of XAU's MENE shares, it equals a total of CAD$148,790,530! If we subtract this amount from XAU's market cap, it means XAU's GoldMoney business is only receiving CAD$41,813,559 in value when it has trailing twelve month revenue of nearly CAD$700 million and is growing rapidly and already extremely profitable!
Last quarter, XAU's revenue grew by 91.59% year-over-year (YOY) to a record CAD$243,608,754 while its net income grew by 612.6% YOY to a record CAD$7,509,127! XAU earned EPS last quarter alone of $0.10! This was XAU's third consecutive quarter of record revenue and second consecutive quarter of record net income!
Over the last two quarters, XAU has earned total net income of CAD$13,558,086, which is equal to CAD$27,116,172 on an annualized basis! We believe XAU's GoldMoney business deserves to be worth between 15-20X its annualized net income, which would value XAU's GoldMoney business between CAD$406,742,580 and CAD$542,323,440.
After adding the value of XAU's net tangible assets and MENE shares, XAU deserves a market cap of between CAD$555,533,110 and CAD$691,113,970. This would value XAU at a price of between $7.40 per share and $9.20 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. NIA's President has purchased 45,000 shares of XAU in the open market. He intends to sell these shares in the future for a profit and can sell them at any time without notice. This message is meant for informational and educational purposes only and does not provide investment advice.