+++ The fundamentals for gold and precious metal stocks are and will remain very bullish +++
+++ Take advantage of every stock setback with this world-class developer with a potential mega-gold resource in mining-friendly Canada +++
+++ Strong gold lever +++
Our highflyer is also in a consolidation phase Tudor Gold Corp. (WKN: A2AJ7Y, Frankfurt: TUC / TSXV: TUD). After the share has increased by over 1,500% (!) The gold share has consolidated at a high level in the last few days from the previous all-time high of CAD 4.51 (on 08/08/20) currently 2.82 CAD.
This price movement is not unusual as gold corrected from USD 2,065 to USD 1,940 per troy ounce in the same period. Since gold stocks are known to have a special leverage effect on gold, this (from our point of view temporary) price decline for Tudor Gold was correspondingly higher (-37.5%) than for gold, which fell by 6.1%.
Fundamentally excellent gold stocks like Tudor Gold, however, often create a brilliant outperformance compared to gold in upward phases, as the table below illustrates very nicely.
While gold has gained 26.9% since the beginning of the year, Tudor gold rose rapidly over the same period 271%what an enormous Gold leverage of 10.1 corresponds! This gold lever was even included with Tudor in 2019 12.6! This reflects the quality and the high level of investor interest in the world-class gold explorer & project developer. For comparison, in the “normal case” the gold leverage for stocks from the sector is between 1.5 and 4!
Tudor Gold has one of the largest gold lever in the precious metals sector – With an investment you can rely on a unique exploration story and have the best chances of achieving a significant excess return (‘outperformance’) compared to the gold price!
As is well known, there are various valuation models to objectively determine a potential stock market value or the price target of a gold share. The best-known approach is certainly to put the proven ounces of gold (in the ground) in relation to the market capitalization of a company. (Formula: market value divided by the number of ounces of gold).
The result can then be compared with the values of a ‘peer group’ and each individual market participant can quickly decide for himself whether a company is valued too cheaply or too expensively.
The amount of the valuation per ounce of gold often depends on several factors: e.g.
- In which country is the project?
- How complex and expensive is the infrastructure connection
- Ore grades of the resource / metallurgy and degrees of recovery (‘recoveries’)
- Is it a high tonnage / potential mine life project?
Another option possible target price of a gold share To determine, it is to look at the previous gold lever in different time windows. As previously described, it was in at Tudor Gold 2019 and 2020 between 10.1 and 12.6.
We created a hypothetical simulation model and one conservative 8-fold Gold lever set for Tudor.
As you can see in the table, there is still very high price potential in the Tudor share! Prices of 6, 9 or 12, – CAD per share are possible according to the table with a persistent gold price!
Assumption of gold price 2,500 USD per ounce: If we change the gold leverage from 8 to 10, the possible price target would be CAD 10.96.
These are exactly the kind of price gains that precious metal investors want to see in their portfolios: Use what may be the last opportunity to make purchases now!
Attention: The current consolidation phase can expire at any moment. We expect the publication of further results of the ongoing, huge drilling program on ‘Treaty Creek’ in the next perhaps days, but at the latest weeks! So far is EVERY Drill hole encountered gold bearing mineralization.
Tudor Gold has been one of the top performers among the estimated 2,000 – 3,000 listed commodity stocks since 2019.
Even in a gold bull market, price consolidations of 30 – 50% in a few weeks are nothing unusual, as you can see in the price trend of the sector ETF below.
For all new readers, we have briefly put together some background information on Tudor Gold:
Tudor gold is a precious and base metal exploration company with properties in the Golden Triangle of British Columbia, an area where producing or past producing mines and several large deposits near potential development. The 17,913 hectare Treaty Creek project (in which Tudor Gold has a 60% interest) is bordered to the southwest by Seabridge Gold Inc.’s KSM property and to the southeast by Pretium Resources Inc.’s Brucejack property The company controls 100% of the ‘Electrum’ project. In addition, Tudor has ‘earn-in’ options or is 100% involved in other projects in the ‘Golden Triangle’.
From the southwest corner of the Treaty Creek claims bordering Seabridge Gold’s concession areas, the Sulfurets Thrust Fault leads from the Seabridge Iron Cap deposit to the Tudor Gold Goldstorm system. The ‘Goldstorm’ zone is located five kilometers northeast of Seabridge’s ‘Iron Cap’ deposit.
The “Golden Triangle” region is one of the richest gold regions in Canada – over 80 million ounces of gold and over 17 billion pounds of copper have already been found in the immediate vicinity by the world-class explorer Tudor Gold!
Source: Tudor Gold Corp.
Top Facts & Highlights from Tudor Gold Corp:
- Prime location: Huge land package in the world famous Canadian ‘Golden Triangle’ – More than 80 million ounces of gold have already been discovered within a few kilometers.
- The flagship project ‘Treaty Creek’ is right next to the largest world-class deposits and mines. (Seabridge Gold and Pretium Resources)
- Extremely promising project portfolio with over 35,518 hectares of concession areas, spread over four projects.
- ‘Treaty Creek’ is close to good infrastructure: The nearest road and power line are only around 20 km away.
- Excellent geological location of the acquired land packages in mining-friendly British Columbia, Canada.
- Top management – Very experienced and successful team under the leadership of the renowned Walter Storm, Co-founder of the Canadian mining company Osisko mining. Ken Konkin, a multi-award winning geologist, has led the drill program since 2019. He was instrumental in the discovery of Pretium Resources’ The Valley of Kings deposit.
- World class drilling results at the flagship project ‘Treaty Creek’: e.g.
- Hole GS-20-65: 1.161 g / t Gold Eq over 930 meters including 2.12 g / t Gold Eq over 348 meters;
- Hole GS-20-57: 0.845 g / t Gold Eq over 973 meters including 1.40 g / t Gold Eq over 217.5 meters;
- Hole GS-20-64: 0.983 g / t Gold Eq over 550.55 meters including 1.482 g / t Gold Eq over 154.5 meters;
- Hole GS-19-42: 0.849 g / t Gold Eq over 780 meters including 1.275 g / t Gold Eq over 370.5 meters in the 300 Horizon Section;
- Hole GS-19-47: 0.697 g / t Gold Eq over 1,081.5 meters including 0.867 g / t Gold Eq over 301.5 meters in the 300 Horizon Section;
- Hole GS-19-52: 0.783 g / t gold Eq over 601.5 meters including 1.062 g / t gold over 336.0 meters in the 300 Horizon intersection;
- Hole GS-19-48: 0.793 g / t gold Eq over 927.0 meters;
- Hole GS-19-49: 0.800 g / t gold Eq over 826.5 meters including 1.080 g / t gold over 249 meters;
- Hole GS-19-50: 0.681 g / t gold Eq over 577.5 meters;
- Hole CB-18-39: 1.086 g / t gold Eq over 563.8 meters
- Enormous exploration potential – Large parts of the exploration projects are still largely unexplored.
- The Tudor Gold concessions have the potential to be a gold resource in the tens of millions of ounces can be proven.
- Tudor Gold is a prime M&A takeover target.
- Strong support of the ‘Tahltan First Nation’: Signing of a commitment and communication agreement.
- Clear vote of confidence – As of July 10, 2020, more than 50% of the shares were in the hands of the CEO and the company founder Walter Storm (32.5%) and commodity star investor Eric Sprott (19.7%).
The share is on the buying radar of countless gold investors – everyone is waiting for more news flow from the 2020 drilling season in the next few weeks and months!
The company plans to publish an initial NI-43-101 resource estimate later this year.
About Tudor Gold Corp:
Surname: Tudor Gold Corp.
Stock exchange ticker Germany: TUC
Stock market ticker Canada: TUD.V
Last courses in Germany: 1.75 €
Last courses in Canada: CAD 2.82
You can find more information about Tudor Gold here:
Please read our article on Tudor Gold from 07/10/2020 here
Please read our article on Tudor Gold from January 8th, 2020 here
Read our detailed company description here with an assessment from August 1st, 2019:
Link to the company’s website
With speculative greetings
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