High-Grade Gold Production and Probably One of the Most Important Shareholders I’ve Ever Seen in a Tiny Gold Junior (FutureMoneyTrends)
I’ve struggled with this one.
This soon-to-be gold producer has a fair value based on its peers of around 25 cents per share.
The problem and the reason I’ve struggled with presenting it to you is that it’s only trading for 5 cents per share.
And it gets worse: the company is estimating 22,000 ounces of gold production in its first 12 months of production. At just 9x earnings, that would put it at 53 cents per share.
Oh, and that’s at $1,400 gold. Gold is currently trading at $1,543 and going a lot higher, in my opinion.
A gold stock trading for 9x earnings is not being very realistic in a bull market. Gold shares during a bull market can trade for 25 to 50x earnings (I’ll explain why tomorrow).
I’m not the only one who’s noticed this hidden opportunity, and you’ll be absolutely stunned when I tell you who has been buying so much of this stock. Between him and his close friends, they now own about 40% of the company.
Now, why is a stock that’s extremely undervalued a problem? Because it may be difficult to buy shares if no one wants to sell it so cheaply.
***IMPORTANT*** Please read: there are no real sellers for this company at these low prices, so trying to get in it may be difficult, and it will likely gap much higher in order to find a realistic market.
So even though it’s trading today for USD$0.05, as far as we are concerned, we are going to be putting an initial “buy up to” order on it for USD$0.15.
We feel that any price below that is an absolute steal.
Here are the important highlights I want to point out to you.
***Gold production is coming within the next 12 months or sooner!
***The cost of their gold production is $750 per ounce (gold trades for $1,543 today)
***Joseph Carrabba, former Director of Newmont (now Newmont Goldcorp), has discretely purchased 17.8% of the company!
***Mr. Carrabba has brought in additional strategic shareholders who own another 20% of the company.
***Insiders/friends now own about half of the company!
Here is what got our attention while sifting through hundreds of junior mining companies this year.
Joe Carrabba chaired Newmont’s sustainability committee. It’s the team that looks at new deals for assessing what Newmont is willing to potentially buy.
After significant due diligence by Joe, he invested heavily into Winston Gold and eventually resigned from Newmont to become Winston Gold’s Executive Chairman.
Think about the due diligence he had done on hundreds of other companies, yet this is the one he’s backed not only with 7 figures, but his name and closest friends.
Prior to Newmont, Joe was the Chairman and CEO of a company called Cleveland Cliffs, who’s share price went from $10 to over $130 per share! That’s like turning every $5,000 invested into $65,000 (wow)!
Joe didn’t own a single share of Winston Gold until he visited their property in late 2017. Today, he owns just under 25 million shares!
I could be wrong, but Winston Gold is the ONLY company that will be going into production at this scale, with a super low cost of just $750 per high-grade gold ounce, which is about as good as it gets.
This deal is insane if you can get in at under $0.15, in our opinion.
Keep in mind that this is speculative. It’s prudent to NOT go all-in on anything and to always consider spreading out your buy orders.
Recommendation: Consider buying shares of Winston Gold Corp. (US: WGMCF & CAD: WGC).
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. We have been compensated by Marifil Mines two hundred thousand dollars for a one year agreement. We currently own shares purchased through their most recent private placement. We will never sell any shares during any active email marketing campaigns. We have NOT been compensated in anyway and have zero business relationship with Winston Gold Corp. We own shares and will not sell them during any active email coverage. We will not sell, buy, or trade any shares within thirty days of any email mention, but after thirty days reserve the right to buy and sell shares. The company has not been notified of our current write up, we did this completely independent of Winston Gold Corp, and have not been paid in any way. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.