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Gold Standard Ventures: Valuation Remains Attractive After The Drop

Mar. 10, 2021 9:30 AM ETOrla Mining Ltd. (ORLA), OLA:CA23 Comments
Taylor Dart profile picture
Taylor Dart


  • Gold Standard Ventures is one of the worst-performing juniors over the past four years, down more than 80% from its 2016 highs.
  • This significant underperformance has finally led to a material improvement in the valuation, with the stock trading at less than 0.55x its After-Tax NPV (5%), and less than $70.00/oz.
  • Fortunately, this improved valuation is combined with a major management shake-up, a stronger treasury, and a company much further along the development curve.
  • Based on recent developments at Gold Standard, and a likely re-rating on ounces following its Feasibility Study, I continue to see the valuation as compelling at current levels.

It’s been a frustrating few months for the Gold Juniors Index (GDXJ), with even the best developers in the safest jurisdictions being thrown out with the bathwater. One name that’s continued its multi-year decline without respite is Gold Standard Ventures (GSV), a junior looking to develop its South Railroad Project in Nevada. Recently, the company has seen a significant shake-up in management and is on track to complete a Feasibility Study [FS] later this year. At a current valuation of barely $68.00/oz and roughly 0.53x its After-Tax NPV (5%), the valuation is becoming quite reasonable, especially if it can add ounces to the project.

(Source: Company Website)

Gold Standard Ventures has had a busy few months since Q4 with a massive management shake-up, a capital raise to bolster the treasury, and several key appointments with a wealth of Nevada mining experience. The most significant change was a new CEO for the company, Jason Attew, who has a wealth of experience in the sector. On the capital markets side, Attew spent time in investment banking at Bank of Montreal (BMO) Metals & Mining, and most recently, he was the Chief Financial Officer of Goldcorp. This change, combined with a much stronger treasury, has led to a significant investment thesis upgrade since my most recent article. Let's take a closer look at recent developments below:

(Source: Company Presentation)

Gold Standard Ventures has had the right address for years and a solid project for one amenable to heap-leach mining. However, the one missing ingredient was a team capable of moving this project into development, with significant operating experience in the mining sector. Fortunately, this has all changed in the past few months, with a new CEO, three major appointments in January, and a Feasibility Study that's now just around the corner. The most significant appointment made to Gold Standard's senior leadership team

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I am/we are long GLD, NEM. 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.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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