Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Luna Gold: Intriguing, But Not Worth The Risk

Luna Gold (OTCPK:LGCUF) has had a disappointing start to 2014. While the company released guidance indicating that it would keep production costs down and increase gold production, it announced a two day suspension of its operations in January in order to protect its workers and assets from obstructive protesters. It also announced the resignation of CEO John Blake.

In light of these events coinciding with weakness in the company's share price it occurred to me that Luna Gold could be presenting a solid contrarian opportunity. After all Luna Gold's management has big long term expansion plans for its flagship mine, Aurizona. It also has a track record for finding gold.

Nevertheless with a valuation of $128 million and...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details