A friend recently asked me to take a look at Magna Gold Corp which is a company I was not really familiar with at all. Anyway, after doing some due diligence I came to the conclusion that it was a very interesting Mexico focused growth story and started buying some shares. I also got the company to come on as a banner sponsor for the win-win.
In short it’s a company that is already a gold producer and has recently been acquiring a bunch of silver projects in various stages. At around US$58 M in Enterprise Value I see it as both a beta and alpha play on both gold and silver. The company’s flagship mine is not really a low cost mine but if gold hangs around these levels or goes higher I think the current valuation might look very cheap in time just based on that operation alone. Furthermore, the float is really tight since I think somewhere around 80% is in the hands of insiders, institutions and wealthy individuals.
Company website: LINK
Be on the lookout for a longer report on Magna Gold in the future.
(Note: This is not investment or trading advice. Always do your own due diligence.)
Erik Wetterling / The Hedgeless Horseman
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