| Dear Reader,
George Hearst made a fortune from the American Gold Rush.
While the average adventurer scoured streams with a pan during the California Gold Rush, Hearst pursued a shrewder strategy...
And built one of America's greatest mining empires, while using the golden profits to grow his newspaper, radio and media empire.
Hearst's tale is a testament to the power of strategy over blind luck.
Arriving in California in 1850, he started as a prospector but quickly pivoted to mine ownership.
His foresight and industry connections led him to the epic Comstock Lode, a massive silver ore deposit in Nevada.
Overnight Bonanza
He invested heavily, acquiring the Ophir mine on the Comstock. The bonanza that followed made him a millionaire virtually overnight.
Hearst then used his capital to consolidate the ownership of America’s greatest gold mine, Homestake mine in South Dakota, and then expanded into copper with the giant Anaconda copper mine in Montana.
By the late 19th century, Hearst had amassed a net worth equivalent to a Billionaire in today's dollars.
His success flowed from a grasp of value investing in qualified and capable management teams.
(Hang on to that point, because we’re coming back to it.)
Hearst relied on geological expertise to pinpoint rich deposits, then leveraged his industry contacts and ready capital to acquire and develop the most promising sites ahead of the crowd.
Like Hearst, one particular gold company has something special…
A sharp nose for hidden value and a
track record of smart acquisitions.
With a sprawling portfolio of projects across the Americas, including substantial gold projects in Brazil, Colombia, Peru and Canada…
One stock we’ve identified offers remarkable diversification for this exploration and development stage company.
Even more impressive are their latest resource estimates…
- Which total 12.5 million gold equivalent ounces in Measured and Indicated resource.
- And an additional 9.7 million gold equivalent ounces in Inferred resources.
This is a story to put on your radar, in our fully biased minds.
Several factors account for this Valuation Gap
(and Re-Rating Opportunity)...
First,
The company is more of an explorer and developer than a miner at this stage.
Though it controls a vast resource base, it holds a basket of projects at the exploration and development phase.
Second,
The company's 15-year strategy of acquiring ounces of gold resources "on the cheap" has it primed to enter its next value-seeking phase.
And now the company plans on monetizing the assets for the shareholders.
For example...
While gold was trading slightly above $1,000 per ounce in 2015…
- This management team acquired a project that had seen over $60 million dollars of exploration work for less than $2 million.
That’s all during the depths of the gold bear market in 2015.
Fast forward 8 years and in 2023...
One of this company’s assets was spun-off in a separate public vehicle now listed on NASDAQ, and currently this company holds shares with $60 million value at today’s current trading prices for equity received for that asset.
We believe the management will plan on
monetizing other assets.
The company has 12 other assets in its portfolio that have a 12.5 million gold eq ounce Measured and Indicated resource. And 9.7 million gold eq ounces in Inferred resources.
Finally, the company's investment in a royalty and streaming company is easy to overlook -
A prime example is one of their holdings in a company that holds some 240 gold royalties across the Americas – including royalties on 3 of the 5 largest gold mines in the USA and Canada!
The Numbers Don’t Lie
Skeptics will point out the risks here and they could be right: Exploration success is never assured, and the explorer must still prove out its deposits.
That’s exactly the point.
This management team acquired significant ounces in the ground over the past 15 years when gold prices were at or below $1,000 per ounce (gold is $2,300 per ounce today) and were explored and drilled by other management teams over the years.
The strategy was to acquire assets that other companies spent millions on drilling out during the bear market and monetize during the bull market. The whole point is to mitigate exploration risk.
With CAD$162 million in cash and equity holdings (valued at current market prices) with NO DEBT… and a Market Cap of only CAD$215 million.
This explorer and developer boasts a strong balance sheet.
Which is why we’re going to reveal the name to you on Monday, June 3, 2024.
If you missed the last gold stock we published on…
You don’t want to miss opening the next email.
This company has its hands in multiple sectors all firing hot right now.
As the company delivers on its plan to create shareholder value from an extensive portfolio of gold projects throughout the Americas…
Not to mention additional value potential through exposure to copper resources and an overlooked uranium asset in Canada…
We expect the market to wake up and start seeing the potential here.
And of course, there are several catalysts that could ratchet up the progress that much faster, like:
- Exploration drilling success,
- Unlocking value from a little-known uranium project in one of the best uranium locations on the planet.
This Gold Stock has our Full Attention
Especially with gold decisively broken out over $2,300.
And we think you should consider this stock and do further research.
On June 3, we’re going to reveal the name and ticker of this stock.
Here’s why it needs to be on your radar:
- Gold prices keep rising, which means their growing asset portfolio marked to the gold price will increase in value as well.
- They have been aggressively enhancing the value of their gold projects, most recently by reducing third-party royalties.
- The management team each have decades of experience in the mining industry, and are tapping into a deep network of connections to find and analyze new projects.
And – completely separate - they also have exposure to one of the hottest sectors of the last 3 years, not named A.I.
But A.I. won’t exist without the expansion of this once-hated sector that today is promoted by Silicon Valley as the clean energy solution and lifeline to A.I.
If you want to be first in line for the big reveal of this stock at 9am Eastern Time before the market opens.
And we’ll get you all the details.
Regards,
Marin Katusa and the KR Special Situations Team | 
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