Q: An update please on your opinion and outlook for GOLD.
Thanks
Thanks
5i Research Answer:
GOLD is a small company ($242M market cap) that is mostly flat year-to-date and up 15% on a one-year basis. It is pre-revenue, and it mostly issues shares to fund its operations. The company has a few key assets in Yellowknife, Alaska, Argentina, and Brazil. It follows an acquisition-driven growth strategy, aiming to build a large and diversified portfolio of gold projects. While the price of gold has mostly been rising this year, GOLD's performance has been fairly muted and while we think it looks interesting if news flow picks up significantly, we would consider it OK for small cap sector exposure, but not really compelling.