My analysis:
- This company is currently drilling two prospects which are showing the early signs of being a multi-million ounce discovery (and possibly connected)
- The discovery is being made in the best gold mining jurisdiction in the world (Western Australia)
- The discovery is sandwiched between two mining operations and within short trucking distance of a cashed up major with a mill that needs to be fed (an obvious takeover target)
- Company management are highly experienced and well regarded geologists who know how to maximise shareholder value by making large discoveries
- Global governments and central banks have been stimulating the economy to such an extent that we now have inflation the likes of which we haven't seen for 30 years (super bullish for gold, regardless of analyst fears of rising interest rates)
- Global gold reserves and head grades have been continuously dropping for years due to the fact large gold discoveries have become very rare (so new large discoveries are valued at a premium)
As for what the share price will be in 12-24 months I can't tell you. But I believe it will be higher than what it is today. What have I missed?
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