Gold Breaks $5,000 and Silver Hits $105
Gold has just surpassed $5,000 per ounce and the valuation disconnect in junior gold is becoming extreme.
Lahontan Gold (TSXV: LG) currently trades at a US$54.47 million market cap with 1.95 million ounces of gold-equivalent resources, implying a valuation of just US$27.93 per oz AuEq
(1,539,000 oz AuEq Indicated + 411,000 oz AuEq Inferred).
For comparison, Hycroft Mining (HYMC) trades at roughly US$300 per oz of gold resources or more than 10× Lahontan’s valuation.
Importantly, Lahontan’s gold grades are significantly higher than Hycroft’s, with a much higher percentage of oxide gold, making its ounces materially more attractive.
If Lahontan were valued like a silver developer, its closest peer would be Apollo Silver. Yet on a gold-equivalent basis, Lahontan actually has more resources than Apollo despite trading at a fraction of the valuation.
To put this into perspective, here’s where leading silver developers are trading today relative to their 2020–2022 cycle highs:
| Company | Market Cap (USD) | Multiple vs 2020–2022 High | Prior High Date | Prior High (USD) |
|---|---|---|---|---|
| Silver Tiger Metals (TSXV: SLVR) | $471.67M | 2.91× above | May 18, 2021 | $161.94M |
| Blackrock Silver (TSXV: BRC) | $453.69M | 2.723× above | March 24, 2022 | $166.61M |
| Aftermath Silver (TSXV: AAG) | $321.92M | 1.89× above | January 7, 2021 | $170.27M |
| Apollo Silver (TSXV: APGO) | $295.01M | 2.008× above | July 9, 2021 | $146.93M |
| Silver X Mining (TSXV: AGX) | $273.45M | 4.255× above | June 28, 2021 | $64.26M |
| GR Silver (TSXV: GRSL) | $237.94M | 2.358× above | May 25, 2021 | $100.89M |
| Minaurum Silver (TSXV: MGG) | $222.44M | 1.113× above | August 19, 2020 | $199.79M |
| Silver Mountain Resources (TSXV: AGMR) | $192.03M | 2.79× above | February 15, 2022 | $68.82M |
| Silver Viper Minerals (TSXV: VIPR) | $135.94M | 2.482× above | June 10, 2021 | $54.76M |
Meanwhile, Lahontan Gold remains priced as if gold were still $1,800 not $5,000+.
And among silver names, Minaurum Silver (TSXV: MGG) remains the most undiscovered silver stock in the group, with the greatest remaining upside as valuations normalize across the sector.
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. NIA’s President has purchased 200,000 shares of LG in the open market and intends to buy more shares. NIA has received compensation from LG of US$50,000 cash for a six-month marketing contract. NIA is receiving compensation from MGG of US$100,000 cash for a twelve-month marketing contract and previously received US$60,000 cash for past marketing contracts which have since expired. This message is meant for informational and educational purposes only and does not provide investment advice.