Jeff, Peter, Jenn and our new marketing manager Victoria are at the Metals Investor Forum and Vancouver Resource Investor Conf, please allow us extra time to respond to emails.
Jeff, Peter, Jenn and our new marketing manager Victoria are at the Metals Investor Forum and Vancouver Resource Investor Conf, please allow us extra time to respond to emails.
-Jeff Clark, TheGoldAdvisor.com
You don’t need me to tell you that mining stocks are at depressed levels.
But how cheap they are right now just might shock you…
I joked to someone at a conference back in 2018 that mining stocks were probably as cheap as dirt. It got me thinking, so when I got back to the office I had a researcher run the calculations—and was stunned at what we found.
Even better, I liked how mining stocks performed shortly after we reported how cheap they were. Over the next 18 months GDX gained 101%. You basically doubled your money in a short period of time by investing in a static index fund.
Why? They were dramatically oversold and poised to jump at the smallest catalyst—much like the setup we have today, as you’ll see.
Since we’re still near the bottom of the typical mining cycle, I updated our tables and calculated the price of price per tonne of each explorer and developer in our portfolio with a Resource and compared it to the price per tonne of topsoil, mulch and compost. (These forms of dirt are typically sold by the cubic yard, which we then converted to a metric ton to compare apples to apples). Prices as of 12-31-24.
You too, may be amazed at what we found…
First up, the gold explorers and developers in the Gold Advisor portfolio (view free with signup).
The rows you want to look at are the colored ones labeled Price per tonne, which shows the current value of each stock compared to the price of topsoil, mulch and compost.
Every single company in the Gold Advisor portfolio with a resource is currently selling at a price cheaper than the landscaping dirt you can buy at Home Depot. Only Radisson is more “expensive” than topsoil, though is cheaper than mulch or compost.
And get this: mulch is basically decaying leaves and bark, so all our stocks are currently cheaper to buy than decaying leaves and bark!
Remember, a “resource” is basically a project that has an economic value of gold. It takes money to dig it all up, but the “gold in the ground” is currently selling for less than dirt. Amazing.
Here’s a comparison of the two silver explorers and developers in our portfolio.
Vizsla Silver is cheaper than all forms of commercial dirt, and Dolly Varden is cheaper than mulch and compost. The value of their stocks at current prices is literally dirt cheap.
There’s one stock in our portfolio that almost defies belief…
We added a copper explorer on August 1 last year, and the stock has gone nowhere but down. This despite having a solid copper Resource with multiple projects that carry strong exploration potential.
Check out just how cheap it is currently selling for.
Vizsla Copper is selling for 900th of the price of topsoil. And half again that of mulch.
It’s one of the cheapest copper exploration stocks you’ll find, one that already has a resource and a drill program currently in the planning stages.
The obvious conclusion from this data is that we can buy these stocks at a price that is literally cheaper than the dirt in your backyard.
And every one of these companies carries strong exploration potential. They are, or will be, drilling soon, so there are catalysts on tap.
It’s a circumstance we won’t see very often in our investing lifetime. And with tax loss selling now officially over, we may not have to wait long for the rebound to begin.
I say grab it while it’s available.
Disclosure: These are some of the sponsoring companies of our website, but they get invited only if I personally own them. If I wouldn’t own it, we turn them down—and we’ve turned down many companies. You can see here I’m overweight many of these stocks.
