Why Augusta Gold (TSX: G) Deserves to be $5+

It is difficult to value Augusta Gold (TSX: G) when the largest owner of gold resources in their district AngloGold Ashanti (AU) is the world's fourth largest gold producer and AU gets valued based on their production and not their gold exploration/development activities.

To value G you need to look at Orogen Royalties (TSXV: OGN).

OGN has a market cap at $1.13 per share of CAD$226.819 million with a net cash position of CAD$16.74 million for an enterprise value of CAD$210.079 million.

By far, OGN's #1 most valuable asset is its 1% NSR royalty covering AngloGold Ashanti (AU)'s Expanded Silicon Project in the Beatty Gold District. We estimate that 75% of OGN's enterprise value is for its 1% NSR royalty covering AngloGold Ashanti (AU)'s Expanded Silicon Project in the Beatty Gold District. This values OGN's 1% NSR Royalty covering AU's Expanded Silicon Project in the Beatty Gold District at CAD$157.559 million or USD$115.776 million.

If the market value of a gold project is $100 million a 1% NSR Royalty in that gold project would have a market value of approximately $5-$10 million. If a $100 million gold project was about to be constructed within months a 1% NSR Royalty in the gold project would be worth $10 million. If it still has a lot of work to do before it can be constructed it would be worth $5 million.

The Expanded Silicon Project consists of the Merlin Deposit which has a maiden inferred resource of 9.05 million oz of gold and the Silicon Deposit which has a measured & indicated 3.4 million oz of gold plus an inferred 0.81 million oz of gold for a total gold resource of 4.21 million oz. The Expanded Silicon Project contains a total of 13.26 million oz of gold resources.

Because most of the resources are inferred, AU still has a lot of work to do before it can construct the Expanded Silicon Project. Therefore, if we estimate that OGN's 1% royalty is worth 5% of the market value of Expanded Silicon it means we can multiply USD$115.776 million by 20 to estimate the current market value of Expanded Silicon = USD$2.316 billion.

$2.316 billion divided by 13.26 million oz of gold resources = USD$174.624 per oz of gold resources.

Augusta Gold (TSX: G) owns 1.92 million oz of gold resources adjacent to Expanded Silicon in the Beatty Gold District.

A valuation of USD$174.624 per oz of gold resources multiplied by 1.92 million oz of gold resources equals USD$335.278 million or CAD$456.28 million. With 85.96 million shares outstanding, this values G at $5.31 per share. G has some debt owed to Augusta Investments (basically owed to itself) its largest shareholder that we expect to be eliminated soon. G deserves a premium for its management team the Augusta Group whose every company they create gains thousands of percent and gets acquired for billions of dollars.

G can very realistically surpass $5 per share this summer.

G's gold projects are much more advanced than AU's Expanded Silicon Gold Project. G's Reward Project is fully permitted and can be constructed immediately. G's Bullfrog Project is equally advanced to AU's North Bullfrog, which will begin construction in early 2025 after it receives permitting.

OGN doesn't own any royalties in AU's North Bullfrog, which will see its construction launch in early 2025. By the time North Bullfrog is under construction early next year, G could easily be trading as high as $10 per share.

On September 17, 2023, with Orogen Royalties (TSXV: OGN) at $0.70 per share, NIA sent out an alert saying, "At some point within the next 12 months, it would not surprise us if OGN gains another 42.86% to $1 per share and reaches a CAD$193 million market cap."

NIA's prediction has already come true! Augusta Gold (TSX: G) is next to explode!

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 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.