{"id":3595,"date":"2025-09-17T21:44:57","date_gmt":"2025-09-18T01:44:57","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=3595"},"modified":"2025-10-04T13:53:29","modified_gmt":"2025-10-04T17:53:29","slug":"ctgo-hits-new-52-week-high-gdxj-inclusion-begins-at-market-close-on-friday","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/technicals\/ctgo-hits-new-52-week-high-gdxj-inclusion-begins-at-market-close-on-friday\/","title":{"rendered":"CTGO Hits New 52-Week High, GDXJ Inclusion Begins at Market Close on Friday"},"content":{"rendered":"\n

Contango ORE (CTGO) gained by 3.22%<\/span><\/strong> today to $23.74 per share<\/strong> and hit a new 52-week high<\/strong><\/span> of $24.70 per share<\/strong>. CTGO<\/strong> will be added<\/strong><\/span> to VanEck Junior Gold Miners ETF (GDXJ)<\/strong> effective<\/strong><\/span> at market close on Friday, September 19th<\/strong> pursuant to GDXJ's semi-annual review<\/strong> and quarterly rebalance<\/strong>.<\/span><\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

One of the many gold miners <\/strong><\/span>we researched<\/strong><\/span> months ago, and we went to visit their mines in person was Golconda Gold (TSXV: GG)<\/strong>. It was $0.30 per share<\/strong> when we researched<\/span><\/strong> it and we figured it was undervalued<\/strong><\/span> and likely to rise<\/strong><\/span> to $0.90 per share<\/strong>, but in comparison<\/strong><\/span> to our gold<\/span>\/silver<\/span> exploration & development stock suggestions<\/span><\/strong> we estimated<\/span> GG's upside<\/span><\/strong> to be miniscule<\/span><\/strong>. NIA determined that CTGO<\/strong> and Heliostar Metals (TSXV: HSTR)<\/strong> are the gold miners<\/strong><\/span> with the most upside potential<\/strong><\/span>.<\/span><\/span><\/p>\n\n

Despite NIA not<\/span><\/strong> being impressed<\/strong><\/span> by GG<\/strong>, it gained by 9.94%<\/strong><\/span> today to $1.88 per share<\/strong>.<\/span><\/span><\/p>\n\n

Here is a chart<\/strong> of GG's enterprise value vs. free cash flow<\/strong>:<\/span><\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

GG's enterprise value<\/strong> is now its highest<\/strong><\/span> in history by far, but despite<\/span> record high<\/span> gold prices<\/span><\/strong>, GG's free cash flow<\/strong> has failed<\/strong><\/span> to surpass<\/strong><\/span> its previous highs<\/strong><\/span> from multiple<\/span> time periods<\/strong>. Most importantly, every time GG<\/strong> achieves positive<\/span> trailing twelve-month free cash flow<\/strong> it is followed by negative<\/span> trailing twelve-month free cash flow<\/strong> shortly afterwards.<\/span><\/span><\/p>\n\n

GG<\/strong> is a great opportunity compared to Hycroft Mining (HYMC)<\/strong>, which has never<\/strong><\/span> once achieved positive<\/span> trailing twelve-month free cash flow<\/strong>, but why on earth<\/span><\/strong> would anybody invest<\/strong><\/span> into GG<\/strong> at an enterprise value<\/strong> of $99.58 million<\/strong> with trailing twelve-month free cash flow<\/strong> of only $3 million<\/strong><\/span>, which is unlikely<\/span><\/strong> to last for long?<\/span><\/span><\/p>\n\n

CTGO launched production<\/span><\/strong> for the first time last summer and has already achieved current trailing twelve-month free cash flow<\/strong> of $44.49 million<\/span><\/strong>! CTGO's gold grades<\/span><\/strong> are so high<\/span><\/strong> at 7 g\/t gold<\/strong><\/span>, one of the highest-grade<\/span> open pit gold mines<\/span><\/strong> in the world<\/strong><\/span>… that CTGO<\/strong> is likely to consistently<\/strong><\/span> achieve positive<\/span> trailing twelve-month free cash flow<\/strong> for countless years to come… and its free cash flow<\/strong> is likely to grow significantly<\/strong><\/span> from here!<\/span><\/span><\/p>\n\n

For CTGO<\/strong> to simply match<\/span> GG's enterprise value\/free cash flow ratio<\/strong> of 33.19<\/strong> it would currently value CTGO<\/strong> at more than<\/span> $120 per share<\/strong>!<\/span><\/span><\/p>\n\n

CTGO's newly acquired<\/span><\/strong> Johnson Tract<\/strong> is one of the world's<\/span> highest grade<\/span> polymetallic<\/span> gold development projects<\/span><\/strong>. Johnson Tract's location near tidewater<\/span><\/strong> will enable<\/span> rapid<\/span> shipment<\/strong> to established<\/span> processing facilities<\/strong> in Coastal Alaska<\/strong> and\/or British Columbia <\/strong>thereby eliminating<\/span><\/strong> the costly<\/span> requirement<\/strong> for an on-site mill<\/strong> or tailings facility<\/strong>.<\/span><\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

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 has received compensation from CTGO of US$30,000 cash for three months of coverage and could receive a total of up to US$80,000 cash for ten months of coverage. NIA has received compensation from HSTR of US$30,000 cash for three months of coverage and could receive a total of up to US$100,000 cash for twelve months of coverage. This message is meant for informational and educational purposes only and does not provide investment advice.<\/em><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Contango ORE (CTGO) gained by 3.22% today to $23.74 per share and hit a new 52-week high of $24.70 per share. CTGO will be added to VanEck Junior Gold Miners ETF (GDXJ) effective at market close on Friday, September 19th pursuant to GDXJ's semi-annual review and quarterly rebalance. One of the many gold miners we […]<\/p>\n","protected":false},"author":1,"featured_media":3598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[48,47,28,182,9,180,49,17,24],"class_list":["post-3595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technicals","tag-copper","tag-ctgo","tag-etfs","tag-gg","tag-gold","tag-hymc","tag-lead","tag-silver","tag-zinc"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/3595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=3595"}],"version-history":[{"count":2,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/3595\/revisions"}],"predecessor-version":[{"id":3600,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/3595\/revisions\/3600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/3598"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=3595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=3595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=3595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}