Many of my readers benefitted in the last up cycle in junior gold mining stocks with the acquisition of Fronteer Gold by Newmont Mining for over billion. I was one of the few analysts who predicted this buyout of Long Canyon and Fronteer. Most investors do not know that Long Canyon was acquired by Fronteer Gold from Auex Ventures and NewWest Gold who owned the Long Canyon, Northumberland and Sandman project. NewWest was run by Steve Alfers who went on to head US Operations for Franco Nevada up until 2011. Steve then was appointed CEO of Pershing Gold in March of 2012. The junior gold mining stock tripled in value when Alfers was appointed moving from 35 cents to 95 cents before settling back down. Management is crucial to an emerging producer and Alfers is a well recognized authority in US mining law, corporate financing arrangements, complex mining transactions and most importantly in today’s environment mergers and acquisitions. Many junior miners are trading with no cash and for literally pennies of a penny on the dollar. Pershing is cash rich with over million in the bank, 3 open pit mines and a state of the art, fully permitted and constructed heap leach processing facility with a huge capacity. The plant could process ore from new discoveries which Pershing is actively exploring. They have been hitting some exciting drill results recently. The recent permitting, drill results and potential uplisting to a larger exchange could be a major catalyst for this company which has the backing from a few strategic shareholders but may soon see an influx of institutional names wanting to get into a permitted and shovel ready low cost gold production story. Pershing is trading at all time lows and may be a better bet than chasing the overbought and parabolic S&P500 into all time highs.
Disclosure: I own Pershing and the company is a website sponsor.
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