Gold Stocks Exploding! New Spec Rating of 1 Gold Pick!
Jonathan Lebed Newsletter
I announced near the end of 2013 that I was once again bullish on gold stocks… and I timed the bottom for gold stocks perfectly! GDX, the large-cap gold stock ETF, is up 19% from its December low! GDXJ, the small-cap gold stock ETF, is up 33% from its December low! Gold stocks are exploding, but the HUI/Gold ratio is still only 0.172 vs. its 17 year average of 0.38. GDX is due for a HUGE bounce of 121% even with sideways gold prices. If gold prices climb back to $1,900 per oz this year like I expect… we could see GDX rally 230% this year. I expect GDXJ to continue outperforming GDX and to rise 200% with sideways gold prices and 300% if gold rises back to $1900 this year.
I have a gold stock that is beginning to breakout big and looks ready to explode! Midway Gold (MDW), currently only $1.21 per share, in my opinion could reach $3-$5 by 3Q 2014… when they are expected to begin production at their Pan project in Nevada! I am giving MDW a speculative rating of 1, my highest level of confidence! At the end of 2012, MDW raised $70 million in a private placement at $1.85, a 53% premium to its current share price. As soon as MDW breaks through its January high of $1.27 I expect MDW to explode to $1.85 very quickly.
MDW currently has $59.49 million in cash and only needs $99 million to bring Pan into production, which includes working capital and contingency. I expect MDW to announce about $40 million in additional funding very soon, which in my opinion could drive MDW immediately to $2+. MDW`s Pan project has proven/probable gold reserves of 864,000 oz and is expected to produce 81,000 oz per year! Including preferred shares that can be converted into common, MDW currently has 168.72 million total shares outstanding. With $59.49 million in cash and no debt, it currently has an enterprise value of only $144.66 million or $167 per oz of proven/probable gold reserves. Based on current gold prices and projected production of 81,000 oz per year, MDW will generate initial annual revenues of $103.3 million. This means the stock only has an enterprise value of 1.40X projected revenues! Using cash flow from Pan, MDW expects to bring its sister Nevada project Gold Rock into production in 2016! In addition, America`s largest gold producer Barrick (ABX) has already invested $38 million developing a third MDW gold project in Nevada, Spring Valley. ABX is expected to eventually bring Spring Valley into production and MDW will retain a 25% interest, despite ABX paying for all of its development expenses! This could give MDW three producing gold mines within 2-3 years! —– Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: http://lebed.biz/disclaimer.htm Jonathan Lebed Lebed.biz Staff This message was sent to from:
Jonathan Lebed | 350 Ramapo Valley Rd | Oakland, NJ 07436
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