I know several on this forum like to speculate on very small cap names and are looking for possible 10 -20 bagger potential.

Although this can be a rewarding strategy, I prefer to focus on companies that already have ounces in the ground, are drilling for more, and are aiming for at least 3-5 million ounces gold, as these names could possibly be taken out by major companies down the road. Smaller companies I believe are less likely to be taken out.

 

A nice example is CGT, upside has been less pronounced in CGT as company only has 50% of project and IRR was on the lower side in last feasibility, but the company is fixing this

 

SBB, on the other hand, has far better metrics, but had some permitting issues, company still has upside left and is still seen as takeover target

 

FPC has been active lately, with several Canadian brokers publishing research, I think we are only at the beginning of this story as NPV is far higher than current market cap and Osisko is involved

 

 

SSP remains very cheap on all metrics. I am less sure about take over potential in the next years however

 

 

Another favorite of several newsletter writers is AQI trading on ASX, they have JV with ABX and looking for big deposits.

 

A new company, that is set up by FVI founders is VOLCANIC, They are aiming to prove up 3-5 million ounces in West Africa with grade 1-2 gram and higher. Looks VERY interesting at current low market cap