The Investment Doctor
Long/short equity, value, debt, base metals

Goldrock Mines - Upcoming Financing Package Should Cause Share Price Re-Rating

This article covers stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Introduction

In this article I'll examine Goldrock Mines (OTC:MFMNF), which is in the final stages to secure financing for its gold project in Argentina. I will provide a background of the project after I will play around with some numbers to see how the net present value of the project is influenced by different gold price assumptions and discount rates, and I will explain why there's a discrepancy between the fair value and the current share price.

Thereafter I will discuss the risks associated with an investment in...

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