When the market opens for the first trading day of 2019, NIA's #1 stock suggestion for 2019, Fiore Gold (TSXV: F) will no longer have any resistance like we have seen in recent weeks. Because major institutions invested into a Fiore Gold private placement on August 3rd, 2017 at a price of $1.15 per share and some of these same institutions also had multi-million dollar gains on cannabis companies that they invested in earlier this year, they have been tax loss selling their Fiore Gold shares in recent weeks for the purpose of offsetting some of their cannabis profits. Their selling had nothing todo with Fiore Gold's fundamentals and pressured the stock down to artificially low levels.
Beginning on Wednesday we expect the supply of Fiore Gold shares in the market to evaporate. During gold's bull rally in recent weeks, there has been very little movement in TSX Venture gold exploration/mining companies, but we expect this to change in early January 2019. With nearly all sellers gone from the market, many TSX Venture gold explorers/miners are about to make massive rallies on very low volume.
Fiore Gold's 4Q and full year 2018 results will be released in three weeks and we expect to hear about potential plans to add a crushing and agglomeration circuit to the Pan Gold Mine that will greatly improve gold recoveries in 2019! Remember, Fiore's current market cap at $0.325 per share is only CAD$31.76 million or USD$23.29 million when the company has CAD$23.66 million or USD$17.35 million in positive working capital. Fiore's Pan Gold Mine is currently receiving only CAD$8.1 million or USD$5.94 million in value when it will likely produce 50,000 oz of gold in 2019, which at gold's current price of $1,284.50 per oz will equal 2019 revenue of CAD$87.6 million or USD$64.23 million. At a very minimum, we believe the Pan Gold Mine deserves to be worth 1X revenue, which will value the stock at $1.14 per share. If Fiore Gold adds a crushing and agglomeration circuit to greatly improve gold recoveries we believe Fiore's Pan Gold Mine will deserve a valuation of 2-3X revenue, which will value the stock at $2.03-$2.93 per share.
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