Loading ...Potential building in one of the cheapest non-African miners – EGO
I haven’t been in the miners for a long while but I’ve started buying again. EGO has particularly caught my eye. It has been a real dogsh*t name but it appears to be turning around and it’s REALLY cheap. It looks like it might be ready to break out of an inverse H&S bottom.
I also bought a little KLDX and MUX yesterday. I’m still open to the possibility of sub 1k gold, but names like KLDX have been absolutely slaughtered on what appears to be this GDXJ rebalance. Too hard to ignore.
Cashcosts- thanks for your submission – I’ve missed your picks
EGO Cheap? Trading in line with other majors in GDX, even more expensive without its projects in Greece and Romania, but it has more growth. Currently 80% production comes from Turkey, more risky than West Africa.
Maybe if one reads Zerohedge exclusively, a NATO member like Turkey is riskier than Africa but I’m not sure this is the case. Assuming they can execute, EGO is on track to produce 800k per year over the next few years with an EV of 2 bln at the moment. Their production will be even cheaper than Barrick which is producing 5-6 bln or so oz at 25bln EV. The only thing that worries me is that the new Chief is from the Goldcorp Gang. I’m breaking my own rules on this one bc nothing Goldcorp ever touches ex-McEwen is to be trusted and is to be sold to zero.