Gold mining stocks showing signs of life
Gold had it's highest weekly close ever and we seen some nice price action in some of the mining stocks.
The gold price has been very choppy recently and had been in a consolidation move since the end of 2023 basically, that looks to have finally changed this week as the metal made some nice gains and actually had it’s highest weekly close of all-time. You wouldn't know it by the lack of interest in the precious metals sector and poor sentiment.
Things are lining up really nicely for the next upcycle in precious metals, I find it extremely bullish that the metal is trading near all time highs and besides the usual goldbugs there is very little interest from anyone else. The sector has been one of worst performing over the last 2 years which has created some great value in some of the quality names.
I have continued to accumulate shares of my favourite gold/silver mining companies and I was very happy to see some positive price action in alot of the names this week. It’s still to early to say that things have turned around but this is a very positive sign moving forward. Here are the weekly returns below for some of the larger cap producers.
I also wanted to share a one gold stock that looks really great technically and has some great fundamentals behind them.
Mineros S.A - $263 Million Canadian
It looks like things have turned around Mineros, huge weekly volume has been coming into the stock recently pushing it past resistance levels and gaining lots of momentum upwards, its even outperforming the $SPX which has been red hot lately.
The stock is dirt cheap with a P/E of 2 right now they just released earnings of $172 million for Q4, they are trading at a massive discount to book value and the company has very low debt levels. The company produces in Nicaragua and Colombia right now, between the two of them they are producing around 250k ounces annually with AISC around $1200 in Colombia and $1400 in Nicaragua.
The company paid out an annual dividend of just over 10% in 2023 and 12% in 2022, this could get very lucrative at these high gold prices. The company has room for growth and other exploration targets to add ounces. None of which is priced in here imo.
This is worth a deeper look for those interested in the name.
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