The Gold/S&P 500 Ratio has just hit a new 50-month high of 0.522!
At the peak of the last gold bull market in 2011, the Gold/S&P 500 Ratio hit 1.70! This would currently value gold at $9,523.81 per oz!
The most well-known gold mining companies that have gained the most over the last 6-12 months, have a good chance of underperforming over the next 6-12 months. Although high-grade is good so is having maximum leverage to rising gold/silver prices!
Prior to Eric Sprott's Discovery Silver (TSX: DSV) announcing a deal to acquire Newmont's Porcupine Gold Mine on January 25th, DSV already had a market cap of $400 million from the Cordero Silver Project alone (DSV will have 811m shares outstanding following its Porcupine acquisition which equals a market cap of $1.565 billion at last week's close of $1.93). This compares to Levon Resources having an enterprise value of $16 million for Cordero when NIA discovered/suggested Levon back on July 1, 2014! Why does Cordero have a valuation under DSV of 25x higher than under Levon? It is the credibility of Eric Sprott and DSV CEO Tony Makuch.
Levon's Cordero caught our attention in exactly the same way that Newmont's Sandman caught our attention. In recent years, Sandman was owned by a tiny company with no credibility similar to Levon in 2014 when Cordero was receiving only $16 million in value. Imagine what the former Newmont owned Sandman will be worth under the new ownership of Borealis Mining (TSXV: BOGO) a company backed by Eric Sprott and Tony Makuch the same exact people backing DSV!
When BOGO begins drilling at Sandman imagine what will happen if BOGO intercepts bonanza grades of near-surface oxide gold! On January 25, 2010, Newmont announced the following Sandman drilling results:
"Work by Newmont at Sandman has focused primarily on two near-surface gold deposits - Southeast Pediment and Silica Ridge. Recent drilling at these two growing deposits has returned more bonanza-grade gold intercepts with highlights as follows:
Silica Ridge:
90.28 g/t gold (2.633 ounces per ton) and 126.54 g/t silver (3.691 oz/ton) over 3.47 metres in NSM-142;
86.91 g/t gold (2.535 oz/ton) over 1.19 metres and 13.15 g/t gold (0.384 oz/ton) over 7.16 metres in NSM-141;
20.03 g/t gold (0.584 oz/ton) over 2.99 metres in NSM-126;
22.37 g/t gold (0.652 oz/ton) over 3.47 metres in NSM-123.
Southeast Pediment:
52.45 g/t gold (1.53 oz/ton) over 1.01 metres, in NSM-147;
9.23 g/t gold (0.269 oz/ton) over 1.22 metres in NSM-146."
One of the only other gold projects we know of with similar high-grade intercepts is Highlander Silver (CSE: HSLV)'s newly acquired San Luis in Peru. HSLV announced this morning that it successfully raised $32.2 million, which was significantly larger than the $25 million that they planned to raise. Demand for HSLV shares was overwhelming! Richard Warke bought more HSLV shares in the offering and so did the Lundin Family!
The Richard Warke backed gold company that will gain the most in 2025 is Augusta Gold (TSX: G). It is absolute insanity how Augusta Gold (TSX: G) is currently trading at a lower share price than HSLV! Augusta Gold (TSX: G)'s initial 2021 private placement of $17 million was at $2.25 per share and its 2023 bought deal of $11.5 million was at $1.71 per share. Altogether, between 2021 and 2023, Augusta Gold (TSX: G) raised $28.5 million at an average price of $2 per share!
Most newly established publicly traded gold mining/exploration companies issue shares to a company's management team/founders at $0.001 per share (practically free). However, even Richard Warke paid $1.20 per share for his initial Augusta Gold (TSX: G) stake and purchased more shares in the $2.25 per share private placement. Richard Warke has made many open market purchases over the last four years including the purchase of 2,996,200 Augusta Gold (TSX: G) shares on March 22, 2023, at $1.33 per share. Look for Augusta Gold (TSX: G) to be acquired by one of the world's largest gold miners in the near-term future at a massive premium!
The Shanghai Composite is one of the only stock indexes in the world that has gained so far this week! Trio-Tech International (TRT) is the tightly held U.S. listed Chinese technology company that all U.S. investors will accumulate to capitalize big on the brand-new imminent Shanghai Composite rally to new all-time highs!
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 and intends to buy more shares. NIA's President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. NIA has received compensation from BOGO of US$100,000 cash for a twelve-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
