Its a golden time to buy GOLD stocks!
Never in my years of investing in the commodity stocks have I seen gold stocks trade at such low premiums.
Producers are trading at there lowest price per earnings! Why? People are doubting this gold rally! Gold is not in a bubble, gold will be in a bubble when gold stocks are trading 30-40x earnings; when everybody and there grandmother is filling there portfolios with gold shares. legitimate deposits are trading at 60-100 dollars a oz. something has to give!
We are going to hit 1700 dollar gold this year mark it on your calender, the catalysts behind it will be Qe3, Gold rally in September, Investors rushing into gold as a safe haven from depreciating currencies, inflation, debt downgrades... The list is ENDLESS.
Now that I have gotten rid of the preface of this article lets get into the goods, here are the stocks that I think will outperform the markets, and unlike other bloggers here that like to PUSH stocks I will give you my 2 cents on why I think they will outperform. The stocks mentioned below will be split into three asset classes explorers for the dare devils Advanced exploration for the gamblers and Producers for the risk adverse!
1) ROG.V Rox Gold
Rox gold is a exploration company based out of Vancouver, fully diluted they have 49 million shares outstanding and 6.5 million in the bank. The market cap on this company is 20.85 million.
The main project Rox gold has is the yaramoko project in Burkina Faso project they optioned from riverstone resources. The company has had great success in there drill program highlights include 6 meters of 24.62 GPT, 62 meters of .62 GPT, 12m of 5.6GPT and 20m of 2.20GPT.
The company is planning on another aggressivedrill program that will consist of 5000m, the company is cashed up, management seems to be top notch. They are also in a very hot gold district. I expect phase 2 drill results to be in line with phase one drill results. The geology seems like the project is of significant size.
This is a high risk high reward stock, if drill results are inline with phase one drill results expect the stock to rocket, a PP was done at .75 cents recently so you are getting in at a lower price than the big boys.
2) RPM. V Rye Patch Gold
Rye patch gold has 142 million shares outstanding. The company has 9 million dollars in the bank.
Rye patch has a excellent management team, together the management has found 80 million oz of gold, its like these guys are magnetically attracted to gold! The company has 3.1 Million oz of gold outlined and 40 million oz of silver. They have a LARGE land position and they are located in mining friendly Nevada. Management puts this company in the best words, they are a supermarket for large mining companies, RPM does not have the desire or plans to become a producing miner, they want to sell or spin out properties. There goal is to become a 10 million oz junior and they are well on the way with a limited drill program they have been having great success.
The key project for RPM is the 100% owned Wilco project but they also have another 3 great projects. Insiders own 8 % of this puppy while Kinross owns 15% and a few us funds own 35% of it.
1) Nes.V Newstrike Capital
Newstrike has 111 million shares outstanding fully diluted the company has 20 million dollars in cash with a market cap somewhere south of 260 million. They are a gold exploration company based out of Vancouver with there main project being in mexico.
There main project the Ana Paula project was bought from Goldcorp in 2010, Goldcorp has done a lot of work with the project, lots of early exploratory drilling. The company has a large portfolio of properties. Luckas Lundin is also a significant shareholder in the company.
The drill results this company has put out this year are the creme of the crop, the best drill holes I have seen all year, highlights include 190M of 3.52 GPT and 116m of 4.71 GPT and 112M of 2.51 GPT
The company already has a project that I think is mineable all the projects in this district are over 3 million oz, significant players in the region are Goldcorp and Torex gold. This Jr is on its way to being a producer in a few years!
2) GCU.V Gold Canyon Resources
Gold Canyon has