TSX Venture Only Market at New 52-Week High

The TSX Venture Composite Index is the only market in the world to finish this week at a new 52-week high.

China has the largest deposits of cash in the world and when a company like CMOC Group Limited (SSE: 603993) acquires Lumina Gold (TSXV: LUM) in a CAD$581 million all-cash deal it increases the pool of capital available to invest into TSX Venture companies.

Even the Triple Flag Precious Metals (TFPM) deal to acquire Orogen Royalties (TSXV: OGN) for CAD$421 million (half cash, half shares, and a spin-off of the non-Beatty OGN royalties because TFPM wants only the Beatty royalty) adds to the pool of capital available to invest into TSX Venture companies.

Since LUM will no longer exist if you want to gain exposure to a high-quality Ecuador deal it benefits Solaris Resources (TSX: SLS).

Since OGN will no longer exist if you want to gain exposure to the Beatty Gold District your only direct way to invest will be Augusta Gold (TSX: G).

We don't have a crystal ball, but Solaris and Augusta will likely be acquired at some point soon, and it will only add further to this pool of capital. It will all have a multiplier effect causing TSX and TSX Venture gold, silver, and copper exploration companies to rapidly multiply in value.

We don't necessarily need gold, silver, and copper to go straight up. The base case net present values (NPVs) of all PEAs and Feasibility Studies will rapidly rise simply by metals prices staying steady. Plus, crude oil keeps on going down so the initial CAPEX and OPEX of mining projects have likely peaked and will slowly come down adding further to the NPVs of mining projects.

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. NIA's President has purchased 232,200 shares of G and may purchase more shares. This message is meant for informational and educational purposes only and does not provide investment advice.