GoldMoney (TSX: XAU)'s customer assets have just surpassed CAD$2.7 billion for the first time in history! XAU provides huge leverage to rising gold prices, without the high capital costs of a gold mining company! XAU's low fixed costs are most comparable to a gold royalty company. Ever since the world's largest gold miner Newmont Mining (NEM) spun-off its gold royalty division Franco-Nevada (FNV) in 2007, FNV has achieved a total return of 1,190% thereby gaining 23.40X more than NEM! Over the last 29 years from January 5, 1992 through today, the world's #1 largest gaining stock in any industry on any exchange has been the gold royalty stock Royal Gold (RGLD), which has achieved a total return of 434,200%! RGLD during this time period gained 14.45X more than Apple (AAPL)!
In recent years, NIA has announced two gold royalty stock suggestions Ely Gold Royalties (TSXV: ELY) and Coral Gold (TSXV: CLH). NIA suggested ELY on August 1, 2019 at $0.30 per share and on June 30, 2020 ELY hit a record high of $2.09 per share for a gain of 596.67% making it the #1 best performing gold royalty stock during this time period! NIA suggested CLH on August 30, 2019 at $0.39 per share and on September 17, 2020 CLH hit a record high of $1.34 per share for a gain of 243.59% prior to CLH getting acquired on November 13th!
XAU's GoldMoney platform enables clients to purchase, hold or take delivery, sell, and exchange into other precious metals a weight of physical gold, silver, platinum, and palladium. Precious metals acquired are stored in the client’s choice of one or more of fifteen high security bullion vaults operated by independent professional vaulting companies. XAU's clients always retain title to the metal they own. All precious metals are stored on an allocated basis, are insured, and are physically available for delivery!
XAU currently has record high revenue (TTM) of CAD$689.71 million! Last quarter alone, XAU generated record revenue of CAD$243.61 million for year-over-year growth of 91.59% and quarter-over-quarter growth of 40.41%! XAU's gross margins (TTM) are at new all-time highs and are now 3.12X higher than three years ago!
XAU's last two quarters were by far the strongest in the company's history with XAU earning net income over the last six months of CAD$13,558,086, which is equal to CAD$27,116,172 on an annualized basis. A multiple of 15-20X its annualized net income would value the GoldMoney business between CAD$406,742,580 and CAD$542,323,440.
XAU has total cash, gold, notes receivable (backed by gold), and shares in Mene (TSXV: MENE) of CAD$148,790,530! This means XAU deserves to trade with a total market cap of between CAD$555,533,110 and CAD$691,113,970. With 75 million shares outstanding, XAU deserves a share price of between $7.40 and $9.20!
XAU's key breakout point will be $4.30 per share, which is where XAU had its last private placement over 3 years ago! Last quarter, XAU repurchased 3 million shares and the company has just approved a new buyback program!
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.