Q: Hello Peter,
I have half a position in GAU and it now sits below where i stop my losses. However I am hesitant to exit today. What is your opinion of this company? Could you opine on the merits of holding this stock for the medium term?
Regards
Rajiv
I have half a position in GAU and it now sits below where i stop my losses. However I am hesitant to exit today. What is your opinion of this company? Could you opine on the merits of holding this stock for the medium term?
Regards
Rajiv
5i Research Answer:
We think GAU is a solid small-cap gold miner. Production is expected to double next year and earnings are expected to grow substantially over the next two years as well as the company's operations continue to pick up. The company also has a net cash position of $78.3M. We think accelerating production will drive revenue and earnings growth for GAU which could warrant it as a medium term hold. There are sector and size risks which will make it volatile, but we think it is a solid small-cap gold mining company.