Gold is up $18 today to $1,343 per ounce! This past Thursday, gold was trading for only $1,275 per ounce, but it has exploded by $68 per ounce over the last six days!
NIA is nearly 100% certain that its #1 stock suggestion for 2019 Fiore Gold (TSXV: F) is about to explode from its current price of $0.31 per share. In our opinion, it could potentially double or triple from its current price and would still be a steal!
It was just announced a few days ago that Fiore last quarter produced a record 10,759 ounces of gold! Fiore generated record quarterly revenue of CAD$18.63 million for year-over-year growth of 28.12%! With strong gross margins of 26.31%, Fiore reported a record gross profit of CAD$4.902 million!
Amazingly, along with Fiore reporting its highest revenues and gross profits in history - it also reported its lowest operating expenses in history! Fiore's total operating expenses declined by 31.68% on a year-over-year basis to a record low of CAD$1.512 million!
Fiore's 2Q 2019 operating income reached a new record high of CAD$3.39 million for sequential growth of 57.64% from its 1Q 2019 operating income of CAD$2.151 million! Fiore currently has trailing twelve month operating income of CAD$8.185 million!
Fiore also reported 2Q 2019 operating cash flow of CAD$3.824 million, which increased its trailing twelve month operating cash flow to a new all-time high of CAD$10.54 million! In addition, Fiore's 2Q 2019 free cash flow was CAD$3.323 million, increasing its trailing twelve month free cash flow to a new all-time high of CAD$7.534 million!
Fiore only has 97.72 million shares outstanding for a market cap at $0.31 of CAD$30.29 million! Fiore's cash position increased by 27.8% last quarter to a record CAD$11.08 million! Considering that Fiore Gold is debt free, its enterprise value is currently an insanely low CAD$19.21 million!
There are only 22 publicly traded gold stocks that reported positive free cash flow both in its most recent quarter and on a trailing twelve month basis! Fiore's enterprise value/free cash flow ratio of 2.6 is by far the lowest in the industry! The median of these 22 gold miners currently trades with an enterprise value of 16.2X trailing twelve month free cash flow. This means a fair value for Fiore Gold is most likely $1.36 per share!
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.