GoGold Resources (GGD.to, GLGDF) is currently a small Silver producer with a pipeline of two development projects. Its CEO Brad Langille owns a large position in the company and has a very strong track record.
The company is attractively priced and in position to produce 9M oz Silver-equivalent/year in a few years, with another development project that could take it to 16-17M oz Silver-equivalent.
The stock has now doubled since we called it a buy on December 22, 2024. It closed Tuesday at C$2.20. It is emerging from a complex
bottoming pattern, which projects an upside target of C$2.60.
Calibre Mining (CXB.to, CXBMF) is being acquired by Equinox Gold (EQX.to, EQX).
The two
companies have a combined market cap of ~US $5 Billion, but have $1 Billion in debt.
Each company is building its most important and lowest cost mine right now. Both are in Canada, where the Gold price is extremely strong.
The combined entity could generate EBITDA of $2.50 Billion
at $2900 Gold in 2026. The combo could grow its production +60% from 2024 to 2026.
In short, if these two mines have no major issues or significant delays and Gold continues to trend higher, the new Equinox should be a sector leader.
