Stock Name | Symbol (US) | Type | Category | Share Price (US) | FD Shares | FD Mkt Cap (4/30/2020) |
1911 Gold | (HAVXF) | Gold | Late Stage Development | $0.32 | 44M | $14M |
This is a new company that is under the radar. I think the odds of it being a success are extremely good. I feel like an idiot because I only have a small position, but that's my style. I recognize the risk of development stocks and tend to hold small positions.
Development stocks generally have horrible risk-reward outcomes. The reason why is share dilution. These companies rarely have any cash and constantly dilute shares to develop their projects. So, usually, whatever your entry price is will be underwater before they get to production. Plus, to add insult to injury, usually, these projects are acquired by a larger company (who has much less upside potential) before production begins.
I have a lot of experience investing in development stocks. I personally have invested in at least 20 quality projects that should have been 10 baggers only to lose money because of the two reasons mentioned above. But I keep going back to the well because it is too much fun. I like to ride these stocks through the development process to production. Of course, it rarely happens, but that's what makes it fun.
If you want to be a smart gold stock mining investor, stick with producers, and stay away from development and exploration stocks. That said, this one looks special. I got in at 24 cents and it's already popped.
Company Overview
1911 Gold is a new company that was able to consolidate the Rice Lake properties (125,000 acres) in Manitoba, Canada. It includes the True North mine (1 million oz. at 5.8 gpt., although a historical resource) and 1200 tpd mill. This was owned by San Gold, which was valued at
