What Are My Top 3 Gold Stocks For This New Gold Bull Market? (How To Profit On Gold)

by birtanpublished on August 22, 2020

What's going on you guys this is Aaron from departures capital and welcome to the video in this video we're talking about three unique gold mining stocks that I thought I would bring to your attention as gold just hit eight point five year highs this week so gold is

Really an awesome topic I love talking about it and I love these videos where we compare three companies now in this video I will say they're not super small cap mining stocks in fact they're mid cap stocks anywhere from a couple

Hundred million all the way up to two billion dollar market caps so three very unique interesting companies each one is very different so we're gonna be comparing these companies on a few different levels using a few different

Metrics and yeah let me know what you think of these picks also feel free to offer your picks down below leave me a comment let me know what you think about the video I mean what you think about you know your picks I did try to check

The comments and I got a couple ideas at least for one of these companies from the comments so thank you guys I always try to check comments and read comments but anyways without further ado let's dive into these three very interesting

Unique gold mining stocks if you support my channel in these types of videos then of course don't forget to smash that like button along with if you are a new viewer yet you want to learn more about investing keep up-to-date on the stock

Market gold mining stocks specifically then don't forget to of course smash that subscribe button and the belf notifications and let's get straight into this video guys so the first thing I want to lead this video off with is

Just a quick piece of news gold futures push above 1800 and hit 8.5 year highs so in the middle of the week gold hit eight point five year highs above 1800 we pulled back a little bit but I feel like gold will eventually be able to

Push above 1800 hopefully hold on to that level and then I got $2,000 per ounce in my site so we'll see if we can get there gold futures were trading up solidly at daily highs in late morning on Tuesday hitting eight point five year

Highs just above 1800 as traders stepped into by the early dip in prices in a market that is technically very bullish and just got more so so that's it for your update on gold guys I just want to pull up the charts here this is as of

Thursday's close now for all my Americans happy July 4th I believe I will be releasing this video on July the 4th you that's right so I will drop this video on Saturday it's shot Thursday night so

Happy July 4th to all my Americans and thanks for wishing me happy Canada Day so any of these guys we solved the Canada Hat they're on the rock I guess I'm gonna have to take that off at some point so in terms of gold gold closed at

1787 just a couple bucks off of 1800 and now could be a fantastic time to take a look at some of these gold stocks just as you know so far it's been almost every pullback so far has been a buying opportunity for gold at least if you've

Been long-term and maintained that long-term outlook and I will maintain my long-term outlook at least for the next couple years at least until you know the situation drastically improves the global economy spending these guys the

First company were taking a look at his wall bridge mining and this was the one stock that was requested with a seven hundred eighty million dollar market cap and a 52-week range at 31 cents to a buck 35 so in terms of charts we were as

High as a buck 35 now we're trading just around a buck o 8 so a nice little pullback I mean I don't know if it's that substantial of a pullback but at least we're not at 52 week guys so let's see what Walbridge mining is all about

And they're a very unique company for the size of their market cap just for the simple fact that they actually don't produce gold yet they've got a ton going on they've got about a one to two year horizon in terms of production so we'll

Be taking a look at the company so Walbridge mining dot-com golden opportunity for growth unlocking the value strategic land package 739 square kilometers in a very awesome – diction the detour Fenelon gold trend so as you

Guys know curriculum link gold bought DT or gold one of the most awesome assets here in Canada and let's take a look at wall bridge mining so as an advanced exploration development company driven by a strategic targeted approach the

Company is focused on advancing the development of its flagship high-grade Fenelon gold project in northern Quebec since acquiring the project in 2016 Aldridge has demonstrated the project's potential to host a multi-million out

School deposit following success that drill bit the company's first mineral resource estimate is expected by mid 2021 so there's still that gap in terms of you know their first mineral resource estimate but things are looking pretty

Good and the stocks been running I want to talk about some of their strategic shareholders so first let's talk a little bit more about the company so multi-million on spittle significant expansion of the phenol on gold

Mineralized system robust fully funded 80,000 to 100,000 meter drilling program for 2020 so they're going crazy drilling a lot this year and then next year we're gonna find out so it's gonna be pretty exciting mining friendly jurisdiction as

You guys know there in Quebec in Ontario one of the best places to be mining one of the safest places to be mining and now let's dive into the investor presentation because there's just a few things that I want to highlight here

First being the share ownership so Eric Sprott owns 21 percent of the company Kirkland Lake gold owns 8 percent of the company management and directors own 1.6 retail and others 61 percent and then William de Construction owns 7.8 percent

So the most significant shareholders here of course are Eric Sprott and Kirkland Lake at 29 percent so I think that that's very important so guys to bring us up to speed 2020 plan to 70 to 80 thousand meter drilling program on

Fenelon and 20,000 meters on newly acquired land so those newly acquired lands for wall bridges recent acquisition of Balmoral resources expands Fenelon gold land package from 10.5 kilometres squared to 80 5.6

Kilometers squared now a lot of these slides just talk about you know their deposits where they plan to drill so if you want to get super technical we can talk about that but for the most part I just want to go over the financials now

And compared to the other two companies that we're talking about so there's a lot going on for Walbridge mining but once again note the key strategic shareholders Eric Sprott Kirkland link cold that's very promising and not to

Mention the area that they're in so very exciting second company is cooler mining or co air mining I don't know how to say that name exactly correct but 1.1 eight billion dollar market cap 52 week range of a buck 98 to 829 currently trading

For for 85 so it's well off of those highs and the stock you know hasn't been doing that great recently we've seen another company like this that was profiled in last Sunday's video now in my opinion part of the reasons might be

Their diversity or in a sense over diversity but will take a look at their operations in just two seconds this company has a lot going on in terms of their operations now it did have a nice run from 450 all the way

Up to 5 bucks and the trend looks pretty good this is not a fast-moving stock like wall bridge mining so let's take a look and see what career mining is all about Sakura mining is a well diversified growing precious metal

Producer with five operations in North America hers wholly owned operations include the Palma Rio gold silver complex in Mexico the Rochester silver gold mine in Nevada the Kensington gold mine in Alaska the wharf gold mine in

South Dakota and silver tip silver zinc and lead mine in British Columbia so let's just dive straight into their operations here we can see guys Palma Rio in Mexico Rochester in New York Kensington in Alaska silver tip in

British Columbia and the wharf in South Dakota so let's take a look at their operations and then of course we're gonna be comparing these three companies with our mining spreadsheet going over the financials and a few other things

That I wanted to highlight for these three companies so for career mining the Palma rail project is gold and silver Rochester gold and silver Kensington Gold Wharf gold and then silver tip silver zinc and lead so let's take a

Look and let's take a look at their asset breakdown at least for 2019 so 69 percent gold 27 percent silver 2 percent zinc and 2 percent lead and then here we go guys 6 percent in Canada 58 percent in the US 36 percent in Mexico so one

Thing I like about the company you know their operations are in North America so they're in pretty safe mining jurisdictions I mean I favor America and Canada / Mexico of course for the tax reasons but still two thirds in North

America which is good to know and when it comes down to their reserves or aisc we're gonna compare that in our spreadsheet now the third company were taking a look at and this is kind of a different business model the first

Company was technically an exploration stage company but a huge exploration stage company you know at least for the market cap usually exploration stage companies are much smaller but Walbridge has an awesome land package and then we

Have Cooper mining that's already producing they've got assets all over the world and they're trying to consolidate their business then for the third company I included sisqó golden royalties and Cisco gold

Royalties is a royalty streamer they don't actually own any mines but what they do is they help mines advance so they can take their gold in the form of a streaming contract or they just straight up go to the mine and say we're

Gonna negotiate so that we can buy your gold and silver at a certain price and that's essentially what streamers do they have multiple contracts with all these different mines and then they just agreed to purchase X amount of the

Production of gold for either X amount of years or for the life of the mind so that's usually how it works with the streamers one nice thing about streamer is they tend to pay a pretty good dividend Oh Cisco golden royalties pays

A 1.5 percent dividend which is pretty nice and I managed to pick up a couple shares around eleven twelve bucks recently but I think this thing has way more room to run if we look at Franco Nevada wheat and precious metals this

Stock hasn't even started to take off compared to the other three anyways guys with that being said that's the background for Oh Cisco gold royalties I have talked about this company before yet again but we're gonna go over their

Investor presentation just one more time and then actually into the financials this time wyona cisco quality up side and opportunity of course quality portfolio over 135 royalty streams and precious metal off takes diversified

Cashflow from 16 producing assets primarily on gold mines ninety one percent cash operating margins that's what I love about these companies see their margins are just so good lowest geopolitical risk profile so here

We go guys we can compare this company to the North American majors or to even the other streamers wheat and precious metals is only thirty six percent in America and 64 percent elsewhere Franco Nevada 27 percent in North America 73

Percent elsewhere Sandstrom gold 20 percent in North America Oh Cisco gold royalties 86 percent in North American 14 percent elsewhere so highest dividend in the royalty sector at 1.5 percent even beating the North American majors

Significantly undervalued with opportunity for a rear eight high trading liquidity strong balance sheet with 243 million in cash nine hundred million in total financial capacity diversified support of

Shareholder base so their core business which is 75% of their model basically they get the cash they go to the mining operations and they get the gold and then of course the royalty streaming rights go right back to the company now

The other 25% of their business model early-stage accelerator business so basically they leverage a technical team to select early-stage stories in the accelerator companies they combined assets teams in capital obtain

High-value royalties at low price with limited competition create royalties that otherwise wouldn't exist so there you go to let's say you know a junior minor or a minor who needs funding in order to build a mine they fund it they

Find some gold they start mining and bam it just created a stream so it's almost like an incubator for smaller staged gold projects which is really interesting and exciting which can offer above average returns it's like

Investing in a business that basically goes around to other companies and helps them incubate so anyways that's a portion of the 25 they also have caribou which is North Spirit discovery group caribou is a district camp with decades

Of exploration potential seeking external financing to advance the caribou gold project with an NS DG providing a Cisco shareholders with exposure to private equity type return as caribou as advance so taking a look

At their tier 1 royalty profile 75 percent asset NPV in Canada 86 percent in North America 135 royalty streams and precious metal off takes so 13 in Australia 9 in South America 108 in North America which is the majority of a

– in Africa 6 in the European area and 3 in the Asian area so so let's talk about the prime real estate in Canada royalty streams on over 25,000 square kilometres the most prolific mining camps decades of future exploration potential

Production and cashflow growth strong development pipeline of assets higher exposure to gold so you guys might be wondering what does Geo mean geo means gold equivalent ounce so basically he ounces of gold paid for royalties

Streaming ounces of 140,000 plus geo production entering into the next phase growth with contribution of Canada's next major gold mines so as you can see it's been consistently growing in twenty nineteen seventy eight thousand ounces

And now they're looking at 140 thousand plus ounces so guys with that being said we're gonna wrap this up for Oh Cisco and pretty much say you know I like the fact that 75% of their core royalty business it's coming from already

Producing mines but I really like they have that 25 percent the early stage accelerator business and the Cariboo North Spirit discovery group therefore they can get in on some exploration stage companies therefore they can

Capitalize on helping to advance projects and create additional streams that they would have never had it's just an interesting business model it offers a dividend yield it also offers future growth and the

Stock hasn't ran like crazy which I really like about him because if we take a look at the five-year chart guys this singing is nowhere close to 52-week highs 52-week highs of seventeen forty seven but you know let's compare this

Chart to some other streamers and they're nowhere even close so these are the companies that I like to find you know before they've essentially gone on a big run so it's happening all throughout the gold sector

We saw what happened to core mining this week absolutely crazy the stock ran all week from almost a buck twenty to two bucks so let's compare this company to something like Wheaton precious metals franco nevada and as you can see here

Guys over the past year of cisco gold royalties is in fact down 10% meanwhile we've got wheaton precious metals in franklin nevada of 57 and 61% respectively so i don't know why this thing hasn't ran just yet but i

Definitely think that it's undervalued compared to its peers and i love the fact that it's got such exposure to safe mining jurisdiction so now let's dive into our mining spreadsheet and take a look at these companies so when we

Compare the current ratio the current ratio is just a total current assets to the total current liabilities it indicates the short term financial health of the company essentially anything over one is considered good

Walbridge mining has a 6.7 current ratio of cisco gold comes in a 2.5 and core mine 1.60 they're all over one that's definitely what I like to see but Walbridge mining is in the green there

With a lot of current assets and not a lot of total current liabilities now when it comes to the price-to-book ratio Walbridge mining is in fact the most expensive and what I've found is a lot of these companies that are owned by

Kirkland Lake Eric Sprott any of the big investors in the gold sector the Linden mining group bluestone resources they tend to have higher valuations but at the same time you know money does talk so if Eric Sprott skeino and 21% of a

Company you know he must believe in the company because we're talking like hundreds of millions of dollars here so and don't get me wrong it's probably already paid off for him he's probably been a long-term shareholder in the

Company but all Bridge mining is price-to-book ratio comes in at seven point four six now the price of a gray show is essentially what investors are willing to pay above and beyond the book value of the company or the assets

Basically the property plant equipment and any other assets so that's why we compare stockholder equity to market cap and as you can see here stockholder equity of 102 million with a market cap of 780 million we arrive at a 7.6 for

Price-to-book ratio now the cheapest company in terms of price to book ratio is a Cisco royalties at 1.49 so when it comes to valuation I definitely think that Oh Cisco gold royalties is still the most undervalued

Of the three not to mention you know I really favor their business model I like that 25 percent exposure to the incubator and the exploration stage project so let's just say I'm already in favor of Oh Cisco gold royalties when it

Comes to these three we'll talk about which one I think has the most potential in just two seconds so let's compare the rest in terms of cash I think well bridge mining has the most amount of cash compared to its market cap Oh Cisco

Gold royalties with 158 million is pretty close and then we've got cooler mining with 52 million to be honest guys they all have a pretty good cash position but I just think that Walbridge has the best cash position for its

Situation now in terms of dividend yield we know that these two companies don't yield anything and Cisco gold royalties yields one five percent now in terms of the mineral reserves as we know Walbridge mining

Doesn't know their mineral reserves we will know half way through 2021 when it comes to co-heir mining coal mining currently has 2.6 million ounces measured and indicated and 244 million ounces measured and indicated ounces of

Silver 2.6 proven and probable gold reserves 182 point nine million ounces of silver 2.9 million ounces inferred of gold and one hundred twelve point seven million ounces of silver inferred so they've got quite the resource base now

That is all across the world we've gone over their project so in terms of their gold production at least for last year three hundred fifty thousand ounces produced in eleven point seven million ounces of silver produced so now when it

Comes to Walbridge mining they do anticipate that once the mine is built by 2021 they should be able to produce over 100 thousand ounces of gold per year and we know they're sitting on a pretty nice asset so there's a lot of

Unknowns when it comes to Walbridge mining but it could be a very big hit in the future so we'll see what happens guys now my opinion on the three companies so here's my personal opinion on each one of them and I'll tell you

Which one I favor in just two seconds so in terms of core mining I think they've got some really great assets I think once again they need to consolidate their business we've seen this under performance in the share price these

Mining companies that are kind of just spread out all across the world not that it's a bad thing but I think that you know they need to consolidate their operations a little bit feel free to argue with me in the comments I'd love

To hear your opinion this is just simply my opinion and from what I've took gonna look at with their investor presentation but overall I think that you know core mining treats at a very attractive valuation compared to some of the other

Mining companies and it does have the potential to run because we know when the bull market hits pretty much everything runs we've seen this in the MJ sector the tech bubble it's it's always it's always the same so now going

To Walbridge mining i think this one has the most upside despite it's run already the stocks ran like crazy but it's still only a buck oh eight Eric Sprott owns 21% Kirkland link owns 8% they hit some really good drill results soon this

Here next year they show us that you know they've got a really nice asset who knows maybe it's bigger than what they expect who knows how high this stock could go it's very exciting stock so wall bridge mining highly volatile but I

Think that this stock has tons of potential especially when they're mining in such a well-known monney jurisdiction so very exciting company and then Oh Cisco gold royalties I think this is the safest one with the best risk to reward

Ratio if you're not if you don't want you know too much risk you want to collect a dividend you want multiple streams in safe mining jurisdictions a highly favored Oh Cisco golden royalties for an investor who doesn't necessarily

Want to take a lot of risk but wants exposure to gold once a company that's focused on gold but also wants to kind of sit back and relax and know that if the company doesn't hit awesome drill results it's going to tank 20%

So that's my opinion on the three guys and I gotta say you know I like exciting companies so in terms of you know capital gains I favor Walbridge mining but Oh Cisco gold royalties I'd be more comfortable with holding a larger

Position so that's it guys that's my opinion on the three companies hope you enjoyed this video I'm super tired I'm getting out of here hope you have a fantastic weekend that's it for the video always remember departures capital

Is for information education and entertainment purposes only don't buy or sell a stock because you heard it on here buy or sell a stock because you don't your research you don't need thorough due diligence and you're making

Your own personal investment decisions for yourself this video is not financial advice we'll see you guys in our next video

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