Northern Vertex: Opportunity On Low Market Cap

Robert Kientz profile picture
Robert Kientz
2.8K Followers

Summary

  • I took a tour of Northern Vertex's Moss Mine, operated by its US subsidiary Golden Vertex in Arizona, this past Friday.
  • The Moss mine sits within the historic Oatman mining district near famed Route 66.
  • The mine is operational, and that means the company should now be valued at its project NPV minus long-term debt exceeding current assets.
  • The market cap is too low, signalling a buying opportunity for investors.
  • Precious metals producers are less risky than explorers, so there's no reason you cannot profit from this deal.

Picture of the gold mine I took while onsite.

This is an update on a previous article I wrote for Northern Vertex (NHVCF), which is a Canadian company that owns the Moss gold mine in Arizona. Now that the company has completed and is running its mine, it should be valued as a producer and not a development company. The article contains highlights of my trip to see the operating mine and notes from speaking with operations personnel on site. Also, I revalue the company now that it is producing gold and silver.

An Historic Location

Traveling down the winding stretch of old Route 66 into the Oatman mining district on our way to tour a working gold mine project, our guide described the significance of the highway for early travelers. At the time it was built, Route 66 was carved into the badlands instead of atop the flatter path through the desert that is now Highway 40. The answer was given that back in those days, cars needed constant water for their radiators. The mountains had sources of ready water, where the desert did not.

The movie Cars, originally set in Radiator Springs, pays homage to the history of this historic American highway. But while the movie laments visitors bypassing Route 66 for the fancier new highway, what I found was that the old town of Oatman is still thriving as a popular stop-off for tourists from around the globe wanting to travel the historic southwestern road.

Picture I took of Oatman hotel while in Arizona near the mine. They serve great hamburgers!

The historic Oatman hotel has a great burger and sandwich joint wallpapered in $1 bills marked with the names of their former owners. The story goes that miners couldn't take their paper money with them to the mine

This article was written by

Robert Kientz profile picture
2.8K Followers
Author of DropShadow and founder of Gold Silver Pros @ goldsilverpros.com.I have been analyzing the precious metals markets for over 10 years, and have built relationships with many experts in the field which include miners, geologists, and analysts. My site is dedicated to providing you professional research on the precious metals market.I have spent over 20 years working in the technology sector as both an IT and information security professional. I have a Masters degree in Information Assurance & Security, a Bachelors in Business with an MIS concentration, and an Associates in Applied Sciences in Unix Administration and Cisco Networking. I began my investing career over 16 years ago while completing several investment advisory exams - Series 3, 6, 63, and 7 covering the commodities, insurance, and stock markets. After watching the 2008 recession calamity, I began deep research into the economy and markets where I found solace in the writings of Austrian economists whose theories accurately predict and analyze the issues surrounding currencies and financial crises. I then wrote a book, based upon my own extensive research, entitled Dropshadow: The Truth About the Economy, which is available on Amazon.Shortly after writing the book, I began writing for Seeking Alpha and other online outlets on economic and financial topics and issues. I have focused my market research writings on Seeking Alpha since 2018.In 2018, based upon my deep research into the precious metals, I launched my personal newsletter service for investors @ www.goldsilverpros.com where I provide precious metals investors with research updates and insider intelligence in order to help them better invest in those markets.

Disclosure: I am/we are long NHVCF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am also long physical gold and silver.

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