Loading ...I-80 Gold Corp IAUX
As an inexperienced chartist, I’d love a talented individual out there in the chartistsphere to look at this gold miner and tell me what you think. It’s been getting good write ups at Seeking Alpha. It looks ready to break out. The more I study this miner, the more amazingly undervalued it looks.
Agree, on the verge of a breakout. Pennies to go…
The chart is OK. What I like is that similar to AUST which I called a steal under $1 last week, IAUX projects are all in Nevada. Many of these explorers are going to get bids when silver breaks above $30.
Gold will be at new ATH’s.
Negative. Looks like just a bounce to me, for now. Take a look how it is negotiating the 30 W EMA and its move above it. The break above on less than 2X vol and next day down on major volume. The whole sector is now stretched. Give it time to base out.
https://stockcharts.com/c-sc/sc?s=IAUX&p=D&yr=0&mn=8&dy=0&i=p11954229773&a=1383838129&r=1680191425524
https://stockcharts.com/h-sc/ui?s=IAUX&p=D&yr=0&mn=8&dy=0&id=p64865132383&listNum=53&a=1383838129
Thanks!
Looks like it’s ready to rock and roll outside of any chart, it’s the bottom line. i-80 Gold is in the process of graduating from developer/small-scale producer to junior producer status (50,000 to 150,000 ounces per annum), but the real opportunity here looks to be a mid-scale and high-grade producer in a top-3 mining jurisdiction ultimately capable of producing 380,000 to 600,000 ounces per annum. And as highlighted earlier, IAUX is unique in that its growth can leverage off existing infrastructure, it has ~$280 million in liquidity (assuming warrant exercises and Orion accordion) to pursue this growth, and it does not need to make any acquisitions with a development pipeline outside of its two highest priority opportunities that some mid-tier producers would salivate over (Mineral Point, Granite Creek Open Pit), let alone a company of i-80 Gold’s size ($720 million fully-diluted market cap).
When are they saying they will reach commercial production? Also “liquidity” is another way to say share dilution. How much ownership does management have and at what cost basic? These are the key questions. We here the blue sky stuff about every project. What is key is will they grown earnings on a per share basis?
It’s covered somewhat in Seeking Alpha, mainly by Taylor Dart. His latest is back at the end of February. It’s interesting. His Valuation after he details their projects is $4.90. Based on an estimated net asset value of US$1.39 billion which ascribes only $150 million in value to its polymetallic opportunity vs. an estimated net asset value of ~$405 million (given that it’s pre-resource and sparsely drilled), and a 1.1x P/NAV multiple given that this is one of the best exploration stories sector-wide, I see a fair value for i-80 Gold of ~$1.55 billion [US$4.90 per share]. Given that I am assigning limited value to the polymetallic potential on the property and zero value to further exploration upside (anomalies identified to date, including a possible porphyry at depth), I see upside to this price target. Measuring from a current share price of US$2.34, i-80 has 110% upside to fair value, making it one of the most undervalued gold producers in the market today.
https://seekingalpha.com/article/4582336-i-80-gold-buy-the-dips
I know you cover many stocks, good and bad, based on reality and not hope. I also know you don’t follow reader’s suggestions for no particular reason. That would waste your time. That is why I appreciate you even looking at this from an experienced trader’s and analyst’s perspective. If it excites you at all, great! I would be forever grateful if you looked into I-80. If not, I still am thankful for the glance.