Euro Sun Mining (ESM:TSX) is my Gold Stock of the Decade. This company has EVERYTHING I want to see:
- SIZE–10 million ounces of gold equivalent, in Europe, permitted for production in an area where large scale mining has been done for over 100 years.
- Only 71 million shares out and cashed up with a recent financing
- Management bought this financing (and their average cost is still close to $1/share–higher than today’s price!–NO cheap stock on this company!)
- CEO Scott Moore and his team have an incredible track record in adding value for their shareholders–their last four projects are now in production
- DIRT cheap valuation vs. peers
- A “Popcorn” market for gold stocks–they’re popping all over right now.
This company has leverage both in the ground and in the share structure, and a management team that can–and has–delivered the goods.
I think I’m going to make A LOT OF MONEY on my 150,000 shares–the numbers I laid out for you in my last email say I have a great chance of making 20x my money–$1,000,000 for me if I’m right! For me, it’s The Gold Stock of the Decade.
When I bought the stock on the 30-cent financing, Euro Sun was valued at just $2.50 per ounce of gold equivalent (some copper) in the ground. At 60 cents it still leaves a potential 22-bagger on the table for every investor today; 2,200%!! This is not my opinion, it’s from the hard numbers in the table below:
|Acquirer||Seller/Asset||US$ Per Ounce|
|Coeur Mining||Northern Empire||$115|
|Sandstorm Gold||Mariana Resources||$226|
|Agnico Eagle Mines||Santa Gertrudis||$86|
|McEwen Mining||Lexam VG Gold||$36|
At 80 cents a share, Euro Sun is still a potential 17-bagger–1672% to be exact!
Great Location, Permitted, Highly Economic
Investors have abandoned this sector and nobody is looking at what these companies are actually doing.
Euro Sun Mining owns 100% percent of the 10 million ounce Rovina Valley Project in west-central Romania — a developed and secure nation that is a member of the EU and NATO. And it is PERMITTED for production.
This is a perfect place to operate a gold mine. This is an established and prolific mining region with THREE large gold mines located within 40 kilometers (25 miles) of each other. There’s over 40 million ounces of gold in this Tethyan Gold Belt–this is like Nevada, or Red Lake Ontario, or Johannesburg South Africa. But nobody knows about it
Rovina is officially #14 in the world for gold deposits. Though I don’t want to be a bad guy, I will say, that 7 or 8 of those ahead of Rovina will almost certainly never see production. The last four assets that Euro Sun CEO Scott Moore has owned are all in production.
The local labor force is skilled and hungry to work and there is excellent road and rail infrastructure already in place. The mining permit arrived last November, when the Market was collapsing and nobody was paying attention. This is HUGE!
Another huge advantage….the cost of power in Romania is DIRT cheap at just $0.07 per kilowatt hour.
The geology here is simple and everything lines up for this to be a very large, very low-cost project. It’s got huge size, low cost and one of the best teams–It’s the Gold Stock of the Decade.
The independent, third-party engineers who completed Euro Sun’s February 2019 Preliminary Economic Assessment (PEA) of Rovina Valley peg the projects operating costs at just $752 per ounce.
That puts Rovina Valley’s operating costs in the lowest 25 percent of the industry.
My only concern? Euro Sun shareholders get robbed of this project with a near-term takeover by a larger player for just a triple or quadruple on my money. Shareholders deserve MUCH more.
With gold prices at $1,300 per ounce a $752 ounce operating cost makes for some fat margins.
And their capex is DIRT cheap for a mine this size–just over $300 million plus a contingency.
Developing this mine will be so simple–nobody has to move, there’s no using cyanide and no wet tailings. (Dry stack tailings are rapidly becoming the new standard for mining, and CEO Scott Moore’s team is embracing that.)
- low capital costs,
- low operating costs,
- skilled local labor,
- full social license
The combination of low operating cost and low cost of development make for a powerful economic combination……..and a no-brainer takeout target for every larger operator in the industry.
Now, I would buy the stock just for all that, but when I tell you what CEO Scott Moore has done in the very recent past, you will understand why this is my Gold Stock of the Decade. I think I can make $1 million here.
CEO SCOTT MOORE HAS MADE OVER $1 BILLION
FOR HIS SHAREHOLDERS!!
Management, management, management. CEO Scott Moore has shown the Market and shareholders time and again he is one of the best financial minds in the mining game, worldwide, regardless of commodity.
Moore specializes in brownfields development, not greenfields, which is discovering a new deposit and turning it into a mine 10 years later.
He and his team buy an unloved asset with some warts on it, and do all the tough work, i.e. a new mine plan, permitting, financing, etc. Anything in-the-ground or above-the-ground, Moore’s team has shown they add HUGE value in a short amount of time. Here is a quick list of some of his recent GOLD successes:
This chart above is the #1 reason I own the stock.
If Moore had just 1 million ounces in Tim-buck-too, I would back this man. He delivers. But here he has TEN MILLION OUNCES of gold equivalent, in a European country. You see all that money Scott has made his shareholders in the last decade? He never had an asset this big. Think what he and his team can do with this. You don’t have to think–I’ll tell you. They can make it a 22-bagger–I hope!
When you meet him, he is not flashy. He is an MBA, but he is a down-to-earth, matter-of-fact, roll-up-your-sleeves and park-the-ego-at-the-door kind of guy.
The 10 million ounce Rovina deposit is one of the most sought after gold assets in the world. Moore bid FOUR times for this deposit before convincing the seller to part with it. Last year, Euro Sun was $1.80/share with this asset and no permit!
Few Stocks Can Make Me $1 Million.
My Gold Stock of the Decade-Euro Sun Mining-Could Do It.
I have a chance to make more than 20x my money on Euro Sun–and I think it could happen in a short period of time, given the gold market I’m seeing lately. Nobody is embarrassed if this stock is at $4; every metric says it could be double digits and still not fully valued.
I could tell you more about how profitable Rovina will be. I could get into more detail of Moore’s previous wins. But I think I have painted the right picture here. The valuation on gold developers like Euro Sun are crazy cheap, and ESM has a team and a near term plan to get it into production–the short term value creation here is incredible! This is the right stock at the right time.
On top of that, it’s a tight stock and management’s cost on their stock is right in at this price level. No cheap stock, and Euro Sun just cashed up.
Gold stocks are very perky right now. The Market is looking for gold stocks. When Euro Sun gets discovered, I think it will move BIG and move FAST. I wanted to get positioned–count me long and a bit biased therefore–before the Market gets wind of it. And you, dear reader, are the very first group to hear about this story. Many other groups will after today.
DISCLAIMER: Management has reviewed and sponsored this article.The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.
Keith Schaefer is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.