Weekly Watchlist - Dec.17, 2023
I am watching these stocks closely this week as I look to potentially add another position to my portfolio.
Summa Silver - Market Cap $60 Million Canadian
Summa Silver is a small precious metal exploration stock, I have been aware of the stock since 2021, it’s very popular among retail investors. When the price of silver starts to trend upwards, Summa moves quickly. It’s already up well over 50% in a month.
They have 2 excellent projects one in New Mexico and one in Nevada. The company is extremely active with news releases every couple weeks it seems. The company just commenced drilling at the New Mexico property, which should provide some nice newsflow as the juniors start to heat up.
The company has $7 million in the treasury, so they shouldn't have to dilute anytime soon, this could be a nice way to play the coming silver bull market.
Victoria Gold Corp - Market Cap $450 Million Canadian
A newer gold producer out of the Yukon, the company has an open pit mine that went into production in 2020. They expect to produce around 200k ounces annually, the project has great exploration potential to add ounces as well, recent drill results have highlighted that. The company has gotten cheap recently, and trades at a large discount to book value. It has also great leverage to the gold price. On watch for a potential breakout.
Goldquest Mining - Market Cap $30 Million Canadian
Goldquest came onto my radar this week, of the 3 stocks listed here, it is the only one that has broken out technically. Large volume came into the stock last week as it rose over 30%. The stock has been around for a long time going back to the early 2000’s. It was recently over .50 cents in the 2020 run.
The company is based out of the Dominican Republic, and has a late stage developmental asset which is the Romero Project. It’s a very high quality project, with almost 2 million ounces of high grade gold. There was a PFS completed in 2016 and the economics are excellent to say the least. A post tax NPV @ 5% of 203 million USD. This was using $1300 Au, $20 Ag and $2.50 per lb Copper pricing. The numbers would be much more lucrative in today’s market.
Okay, so why is the project priced so cheaply? The company had an exploitation licence approved in 2018, but they have been unable to get presidential approval since that time, which is a requirement in the Dominican Republic. There is an important election coming up in the Spring of 2024, which the company is hoping may change its fortunes.
The company is doing what they can turn around public and political opinion. In 2022 they promoted a Dominican National to become the CEO of the company. He is an engineer with over 25 years experience working in the mining industry, he was employed by some big mining names Glencore, BHP and Barrick to name a few.
The public in the past was opposed to the project but some polling done this year indicates that it has now changed for the better. Over 67% of residents in the San Juan Province supports the EIA studies for the project.
Agnico Eagle owns over 15% of the company which may make them frontrunners to take out the company whenever permits are received, the treasury is very healthy with a slow burn rate and no debt.
If the company is able to get presidential approval, the stock is likely to re-rate quickly, it’s an excellent project worth monitoring.
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