Fiore Gold (TSXV: F): NIA's #1 ranked overall stock suggestion for 2019 and NIA's first and only stock suggestion to ever receive a perfect NIA confidence rating of 100 out of 100, is back up to $0.55 per share and rapidly approaching its key breakout point of $0.60 per share. Fiore Gold will announce its financial results for fiscal 3Q 2019 ending June 30, 2019 prior to the open on either Wednesday, August 28, 2019 or Thursday, August 29, 2019.
Exactly one week ago, NIA sent out an "extremely important update" about Fiore Gold at $0.48 per share predicting a breakout before earnings. Between Monday and Thursday of last week, despite gold declining by $15.20 or 1% to $1,497.30 per oz, Fiore Gold gained by $0.04 or 8.33% to $0.52 per share. On Friday, with gold gaining by $29.30 or 1.96% to $1,526.60 per oz, Fiore Gold gained another $0.03 or 5.77% to $0.55 per share thereby achieving a full week gain of 14.58% or 15.64X more than gold's gain last week of 0.932%!
We already know that Fiore Gold's fiscal 3Q 2019 results will be strong because the company pre-announced last month that it sold a record 11,504 oz of gold last quarter. Currently, Fiore Gold has a market cap at $0.55 per share of CAD$53.75 million or USD$40.47 million with a HUGE cash position of CAD$11.08 million or USD$8.3 million and NO debt! This gives Fiore Gold an enterprise value of only CAD$42.67 million or USD$32.17 million.
Based on Fiore Gold's fiscal 3Q 2019 gold sales we will likely see Fiore Gold's trailing twelve month revenue increase this week to approximately CAD$68.8 million or USD$51.91 million. This will give Fiore Gold an enterprise value/revenue ratio at $0.55 per share of only 0.62 vs. its current enterprise value/revenue ratio of 0.642. Fiore Gold is one of only 14 producing gold miners trading with an enterprise value/revenue ratio of below 0.65.
Of the 14 gold miners with an enterprise value/revenue ratio of below 0.65, Fiore Gold has the strongest balance sheet with a current ratio of 5.80, which is nearly quadruple the median current ratio of the 13 other companies. The 13 other gold miners have a median current ratio of 1.53 and 5 of those companies have upside down balance sheets with current ratios of below 1, which means their current liabilities exceed their current assets. If we remove the 5 companies with current ratios of below 1, this leaves only 9 gold miners with enterprise value/revenue ratios of below 0.65 and current ratios of at least 1.
Of these 9 remaining gold miners, Fiore Gold had the strongest gross margin in its most recent quarter of 26.32%, which was nearly quadruple the median gross margin of the 8 other companies. The 8 other gold miners had a median gross margin of 6.845% and 3 of those companies had a gross margin of less than 1% (2 had negative gross margins). If we remove the 3 companies with a gross margin of less than 1%, this leaves only 6 gold miners with enterprise value/revenue ratios of below 0.65, current ratios of at least 1, and gross margins of at least 1%.
Of these 6 remaining gold miners, Fiore Gold had the strongest operating margin in its most recent quarter of 18.2%, which was 5.67X higher than the median operating margin of the 5 other companies. The 5 other gold miners had a median operating margin of 3.21% and 2 of those companies had a negative operating margin. If we remove the 2 companies with a negative operating margin, this leaves only 4 gold miners with enterprise value/revenue ratios of below 0.65, current ratios of at least 1, gross margins of at least 1%, and positive operating margins.
Of these 4 remaining gold miners, Fiore Gold had the strongest net income margin in its most recent quarter of 14.24%, which was 54.77X higher than the median net income margin of the 3 other companies. The 3 other gold miners had a median net income margin of 0.26% and 1 of those companies had a negative net income margin. If we remove the company with a negative net income margin, this leaves only 3 gold miners with enterprise value/revenue ratios of below 0.65, current ratios of at least 1, gross margins of at least 1%, positive operating margins, and positive net income margins.
Of these 3 remaining gold miners, Fiore Gold had the strongest free cash flow margin in its most recent quarter of 17.84%, which was 47.57X higher than the average free cash flow margin of the 2 other companies. The 2 other gold miners had an average free cash flow margin of 0.375% and 1 of those companies had a negative free cash flow margin. If we remove the company with a negative free cash flow margin, this leaves only 2 gold miners with enterprise value/revenue ratios of below 0.65, current ratios of at least 1, gross margins of at least 1%, positive operating margins, positive net income margins, and positive free cash flow margins.
While Fiore Gold (TSXV: F) produced a record 11,573 oz of gold in its latest quarter (ending June 30, 2019) up 8% from the preceding quarter, the only other remaining company saw its gold production during the three months ending June 30, 2019 decline by 24.51% from the previous three month period. This leaves Fiore Gold all by itself as the #1 most undervalued producing gold miner in our opinion!
When Fiore Gold reached a short-term peak on July 31st of $0.60 per share, its 14-day relative strength index (RSI) reached 73.54, indicating that the stock became technically overbought. The profit taking shakeout to $0.48 per share that followed was very healthy for the stock. Currently at $0.55 per share, Fiore Gold's RSI is only 58.21 and no where near overbought levels.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.
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