PRO articles cover stocks that fly under most investors' radar screens.
Blood In The Streets: Why I Bought More Sandstorm Today
- Sandstorm Gold dropped more than 12% to $2.92 Thursday as the price of gold fell to $1,190.
- These are levels we haven't seen since the company first launched in 2009; the RSI reached sub-25 today, indicated shares are very oversold.
- I think the sell-off has been completely overblown for a few reasons, and I added shares today as a result.
Richmont Mines: A Profitable Canadian Gold Producer With A Healthy Balance Sheet, Huge Upside
- Richmont Mines operates three profitable gold mines in one of the best mining jurisdictions in the world.
- The company has a rock-solid balance sheet with $32.6 million cash and only $4.9 million total debt, with profitability increasing at its gold mines.
- With an enterprise value of approx. $51.5 million, 4+ million ounces in gold resources and substantial exploration and production upside, shares are significantly undervalued.
Endeavour Silver: A Growing Mexican Silver Producer With Big Upside Potential
- Endeavour Silver has a compound annual growth rate in production of 45% over the past 9 years, but is just getting started. .
- The company's exploration and development projects have big upside potential, which could add to future growth, pushing Endeavour to 15+ million ounces of production a year. .
- Endeavour is focused on profitability, with all-in sustaining costs dropping rapidly; the stock should continue to outperform.
Orca Gold: A Well-Funded Gold Explorer With Huge Upside Potential
- Orca Gold is a gold exploration company in Africa that has a very promising project with 1.7 million ounces of gold in resources.
- The company has a market cap of $60 million but has roughly $42 million in cash and no debt.
- Orca Gold has flown under the radar, but not for long. The company is led by a management team with proven success.
Kaminak Gold: Coffee Project Is Very Attractive, Big Upside Ahead
- Kaminak Gold's PEA on its Coffee Gold Project showed robust economics, with a pre-tax NPV of $522 and an internal rate of return of 32.8% at $1250/AU.
- Average gold production at the mine would yield 167,000 ounces at super-low all-in costs of $688, which would be among the lowest in the industry.
- Kaminak currently has a market cap of just $82 million; a takeover of the company at a premium is a strong possibility in my view.
Gran Colombia Gold Has Turned A Corner: Big Upside Ahead
- Gran Colombia Gold is an undervalued gold miner in the process of a major turnaround.
- The company's cost reduction efforts at its Segovia mine have been successful so far, with AISC dropping to $1,197 in Q1 2014 and further reductions expected.
- Gran Colombia is a high-risk, super high-reward investment; I believe the company offers investors multi-bagger upside potential and huge leverage to the price of gold. .
Sandstorm Gold: This Cash Flow Machine Is Well Positioned To Outperform
- Sandstorm Gold has one of the most solid balance sheets in the gold sector, with over $110 million in cash, zero debt and $100 million line of credit available.
- The company is a gold streamer - not a miner. Streaming has several advantages over traditional mining, including fixed cash costs forever and no ongoing CAPEX requirements.
- Sandstorm provides exceptional leverage to the price of gold and lower risk; the company appears to have learned from its mistakes and is poised to outperform.