What a time to be a gold investor.
The precious metal has confidently captured US$1,700 an ounce (“/oz”) in recent months and the all-time record is now in sight.
This bull market has plenty of power left in it.
For gold stocks this is the perfect environment for excellent gains; especially with such long-term uncertainty rife in all aspects of our lives.
Substantial returns can be made for shareholders, but only for those who invest smartly.
The best companies will be those that operate the highest-quality projects, taking full advantage of gold’s strength to generate meaningful profits.
These businesses are out there and the market is eagerly hunting for opportunities it might have missed.
This US-focused gold producer has just posted a record set of quarterly financials that reveal strong production and cash flow momentum.
Fiore’s resultsconfirm what analysts have been saying for some time. The company appears undervalued compared to its peers.
Its on-going execution should continue to unearth this value.
For the definitive deep-dive into why Fiore Gold (TSX-V:F│OTCQB:FIOGF│FSE:2FO) is one of this year’s top gold investment opportunities, download and read our EXCLUSIVE REPORT
This is nearly 40% more than it produced in the previous quarter.
This great leap forward has been driven by the company’s aggressive optimization of its open-pit, heap-leach project at Pan.
Pan’s ever-improving output translated to a record $19 million of revenues, $2.9 million of net income, and $3.9 million of consolidated operating cash flow.
With Nevada recently declaring mining an “essential business” during the pandemic, Fiore has been able to maintain its operations with minimal disruption.
Beyond this, Fiore’s balance sheet goes from strength-to-strength.
The company’s net working capital position is $28.7 million!
If you annualize Q2 operating cash flow, a strong valuation case for Fiore’s shares is clear.
And this doesn’t even begin to factor in the potential for Fiore to boost gold production from its other assets.
The company’s medium-term production target is 150,000/oz. of gold a year, and to get there, Fiore has gone on record to confirm it is actively looking for acquisitions.
With such strong financial backing and a management team that has performed so consistently well, it is no wonder analysts are as positive as they are about Fiore.
With the added exploration upside across the company’s existing portfolio of projects, the potential becomes even greater.
For an in-depth look at Fiore Gold’s (TSX-V:F│OTCQB:FIOGF│FSE:2FO) US asset base and its huge potential, download our SPECIAL REPORT
Thanks to its reputation and performance, Fiore is perfectly positioned to increase its footprint in America’s most mining-friendly state.
The company’s Pan and Gold Rock projects cover 200km2 on top of the prolific Mountain-Eureka trend – home to large projects owned by the likes of SRR Mining and Kinross Gold.
Located right next to Pan, Gold Rock is Fiore’s premier growth asset.
The company recentlycompleted a Preliminary Economic Assessment for the project that estimated its future gold production could hit 55-60,000/oz. annually.
With permitting already in place, Fiore believes gold could start to pour at Gold Rock in under three years.
Not only will this take the companypast the 100,000/oz.-a-year production mark, but it will also make it the only multi-asset gold producer listed in North America with a US-only production base.
And there is more.
As the map above shows, Pan and Gold Rock’s known reserves and resources only cover a small proportion of Fiore’s land package. Historic exploration drilling has taken place mainly in and around existing deposits.
Fiore is hungry to address this and is now starting step-out drilling.
The company is currently completing a US$2 million, fully-funded drill programme to expand the resource and to investigate a host of gold exploration targets – many of which are noted for the presence of antimony and arsenic.
This might not sound like the most interesting fact you’ve learned about Fiore today, but chief executive Tim Warman says these trace elements could hold the key to great riches:
“Arsenic and antimony are what are known as “pathfinder elements”- they occur alongside gold but spread out further and closer to the surface that gold does.
If you start finding these minerals in high quantities, you can follow that into the source, and that leads to where the gold is. This has been a critical technique in the discovery and expansion of some of the world’s most important gold super-deposits.”
These pathfinder elements are the “X” that marks the spot.
A significant discovery at just one of these targets could increase Pan and Gold Rock’s mine life and substantially improve the economic return.
Not to mention potentially adding considerably to its official reserves.
With Fiore able to fund its ambitious growth plan with its own money, this makes for an exceptional opportunity.
How many other gold exploration companies at this level are out there that promise so limited a risk of dilution?
If you know of any better, we would certainly like to hear about them.
In the meantime, expect to see Fiore (TSX-V:F│OTCQB:FIOGF│FSE:2FO) continue to execute its game plan and the stock to respond accordingly as other investors begin to recognize the smart play on offer right here.
To find out more about one of the market’s best value plays, read our EXCLUSIVE REPORT – Fiore Gold (TSX-V:F│OTCQB:FIOGF│FSE:2FO)
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Authors: Ben Turney and Daniel Flynn
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