The dust has settled somewhat since the GDXJ rebalance. The very...

The dust has settled somewhat since the GDXJ rebalance.

The very size of the ETF has meant it had to go up market into larger capitalization names and more liquid names. The ETF considers miners below $1 Billion as junior.

To this end, I strongly believe the market has acted irrationally. It has disregarded Resolute’s fundamentals and reduced holdings purely based on market cap.

I don’t believe the company has been sold down as a consequence of doing anything wrong. They have been reduced because their market cap was considered too small to take on the kind of Capital that is coursing through the ETF fund.

Looking further ahead the company has indicated a clear growth strategy to increase production from 300,000 ounces to 450,000 ounces. I believe the Nafolo Discovery will add significant value to companies Syama Project.

Management have indicated their ability to provide solid results over the last 3 years. I believe the sentiment on the stock will be reviewed and a re-rated.

$290m cash, bullion and investments, no debt and extremely attractive Peer Benchmarking (see below) makes this a standout in my list of undervalued stocks.


I will be buying.

DYOR