Sometimes we feel like we are inadvertently misleading people when we say things that may make it seem like it is possible for a stock like Aris Mining (TSX: ARIS) or Orogen Royalties (TSXV: OGN) to gain as much as Augusta Gold (TSX: G).
It is a 100% fact that ARIS is the world's #1 best producing gold miner with a market cap of less than $1 billion especially with two members of the mining industry's Mount Rushmore backing the company: Ian Telfer and Frank Giustra.
It is a 100% fact that OGN owns the world's #1 best gold royalty that every other company would do anything to own covering the Expanded Silicon + Merlin Gold Project in the Beatty Gold District.
However, on a risk adjusted basis, it isn't possible for any stock to gain as much as Augusta Gold (TSX: G), because the primary risk factor with G is that the Beatty Gold District doesn't get developed. As long as the Beatty Gold District gets developed, the market will revalue G to a market cap that is at least 10X higher than today, and it will get priced in well in advance.
With G, we don't have to worry about whether or not any drill holes successfully intercept gold because they aren't currently drilling for gold, and they already have massive resources of 1.92 million oz of 95%+ oxide gold for low-cost highly profitable production. With G, we don't have to worry about whether or not they meet analyst estimates each quarter because they aren't currently producing any gold but own the most advanced gold assets in the #1 largest new gold district of the world's #1 ranked best mining jurisdiction for investment. With G, we don't have to worry about whether or not they receive permitting to construct the Reward and Bullfrog Gold Mines, because Reward is one of Nevada's only fully permitted gold projects ready for construction to capitalize on $2,300+ per oz gold prices and Bullfrog is one of the most successful past producing gold mines in Nevada history. With G, we don't have to worry about whether or not a management team makes any stupid mistakes that destroy a company's value, because their last two companies in the Arizona/Nevada area got acquired at an average price of over $1.3 billion.
The BLM wouldn't reroute the Las Vegas Greenlink West transmission line to avoid going through the Beatty Gold District unless it knew that it planned to approve its development.
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 has received compensation from ARIS of US$50,000 cash for a six-month marketing contract. 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.
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