It is worth reiterating that this could be the last great buying opportunity, but only time will tell. Companies covered: $EQX, $GLDX, $GRSL, $MTA, $MMX, $NFG, $OSK, $ROXG, $SLVR, $TXG, $VGCX, $WM, $WDO, $WPM
The bottom line is the mid-tier gold miners in the sweet spot for stock-price upside potential just reported one of their best quarters ever. Adjusted for majors removed from GDXJ, the rest of its top components achieved production growth way better than their larger peers.
For the year ended December 31, 2020, the Company sold 29,929 gold ounces at a total cash cost of $928 per gold ounce, and a realized 2020 average sales price for gold of $1,813 per ounce. The Company recorded revenues of $54.0 million, and net income of $10.2 million, or $0.48 per share.
The gold miners’ stocks have suffered an extended correction in recent months, leaving them deeply out of favor. Yet their underlying fundamentals remain incredibly strong, thanks to continuing high prevailing gold prices.
Gold has finally rallied off the lows with the mining leading the way. Gold could still test the lows and possible breakdown further, although it is looking increasingly likely gold and put in a bottom.
