Capitalism is Dying
I’m stunned. Hong Kong, one of the last BASTIONS of capitalism, has gone rogue. They’ve just announced HELICOPTER MONEY. The government is deeming it a relief program, in which every adult resident will come forward and collect ABOUT $1,300.
Recessions and cyclical slowdown, which birth ingenuity, lesson learning, emotional discipline, studying defeat, and breed STRONGER people and companies, have been banned by these clueless central planners. Replacing it is DEBT – more and more DEBT.
Courtesy: Fred.org
Just eight years ago, the gold industry spent nearly $12 billion on exploration projects. Last year, that number was 63% lower, just below $4.5 billion. The major mining companies are in BEAR MODE, which is exactly how bull markets begin: a hated industry (resources), an unshakable uptrend (gold at all-time highs in 80 national currencies), and a cheap commodity (silver).
20 years ago, the industry was making just over 40 discoveries per year of deposits containing over a million ounces of gold. Last year, in comparison, that number was THREE!
Markets are going down EXTREMELY hard today and, in my opinion, the profit margins of the mining industry will begin to rival those of the S&P 500 and the NASDAQ darlings soon, causing a buying frenzy.
There’s no denying it any longer: at this pace, Japan, Germany, India, and China, the world’s second, third, fourth, and fifth largest economies, are ENTERING technical recessions in 2020.
The U.S.A. is not immune to this virus, both literally and economically.
In the past 60 years, we’ve suffered through eight recessions overall. You’ll see that the following indicator RARELY issues a false signal, and it is UNMISTAKINGLY flashing red alerts as we speak.
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I’m definitely capitalizing on this, keeping my head to the ground and not BANKING on all of this to continue forever. These are cyclical booms, and the mining shares seem to be JUST STARTING their ascent.
Our timing is precise; you cannot put into words how accurate we’ve been!
The reason that Winston Gold (CSE: WGC & US: WGMCF) is the No. 1 gold stock, in my personal opinion, is that it is NEARLY a producer.
When any gold company transitions from an explorer or a development-stage company to a producer, the risks involved with it substantially diminish since it isn’t just burning shareholder funds and hoping for results.
Think about it in this context: from spending money on salaries, permitting, fees, construction, leasing of equipment, regulatory commissions, essay reports, and a slew of other expenses, Winston Gold (US: WGMCF) begins to process ore and sell gold at a WHOPPING margin ($1,676 – $800 = $876).
It can fund its operations, its potential growth, and its development of this particular project (adding worker shifts, adding working days, drilling further, and getting the other two veins into operational mode).
In December 2020, it is projecting that it will mine 90 gold ounces per day, with 25 working days. That comes out to 2,250 ounces of gold, sold for a profit of $876 each. Do the math: the cash it keeps in shareholders’ hands is USD$1.9M.
Annualized for 2021, this translates to USD$22.84M before we even talk about ramping up the production from 90 ounces to 120 or 150 per day. This all assumes that gold stays flat at $1,676 as well.
A gold producer that dishes out USD$22.84M in annual mining profits trades at multiples of that. Industry-wide, the norm is 6-12x, so if we use 6x, the lowest possible number, the market cap is potentially USD$133M. Today, the company has a USD$14M valuation.
The upside is nearly 1,000% using this theoretical math, which assumes (A) no change in the price of gold, (B) no ramping up of production (HIGHLY unlikely), and (C) the lowest end of the multiples bar.
I’m definitely capitalizing on this, keeping my head to the ground and not BANKING on all of this to continue forever. These are cyclical booms, and the mining shares seem to be JUST STARTING their ascent.
Our timing is precise; you cannot put into words how accurate we’ve been!
The reason that Winston Gold (CSE: WGC & US: WGMCF) is the No. 1 gold stock, in my personal opinion, is that it is NEARLY a producer.
When any gold company transitions from an explorer or a development-stage company to a producer, the risks involved with it substantially diminish since it isn’t just burning shareholder funds and hoping for results.
Think about it in this context: from spending money on salaries, permitting, fees, construction, leasing of equipment, regulatory commissions, essay reports, and a slew of other expenses, Winston Gold (US: WGMCF) begins to process ore and sell gold at a WHOPPING margin ($1,676 – $800 = $876).
It can fund its operations, its potential growth, and its development of this particular project (adding worker shifts, adding working days, drilling further, and getting the other two veins into operational mode).
In December 2020, it is projecting that it will mine 90 gold ounces per day, with 25 working days. That comes out to 2,250 ounces of gold, sold for a profit of $876 each. Do the math: the cash it keeps in shareholders’ hands is USD$1.9M.
Annualized for 2021, this translates to USD$22.84M before we even talk about ramping up the production from 90 ounces to 120 or 150 per day. This all assumes that gold stays flat at $1,676 as well.
A gold producer that dishes out USD$22.84M in annual mining profits trades at multiples of that. Industry-wide, the norm is 6-12x, so if we use 6x, the lowest possible number, the market cap is potentially USD$133M. Today, the company has a USD$14M valuation.
The upside is nearly 1,000% using this theoretical math, which assumes (A) no change in the price of gold, (B) no ramping up of production (HIGHLY unlikely), and (C) the lowest end of the multiples bar.
I’m all-in on this stock and personally have exposure to over 2 million shares!
Best Regards,
James Davis
FutureMoneyTrends.com
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