Why I Doubled Down on Brigus Gold
I know I just posted another blog post a short time ago, but I am way too excited about this account of my visit to Brigus Gold's Black Fox Mine to wait any longer before sharing it with my Foolish community! :)
Why I doubled Down on Brigus Gold
There are a lot of unbelievable bargains out there in the gold patch right now, after the stocks have been hammered mercilessly for weeks (even as the gold price has firmly held its ground!). I am appropriately mindful, therefore, that many of you are likely joining me in pressing youir positions across multiple favorite holdings at this stage. Within that context, I want to encourage Fools to consider making room for Brigus Gold within their baskets of precious metal stocks, because everything about my recent experience in Ontario tells me that this particular company has all its ducks in a row to enjoy a sustained period of meaningful organic growth.
I've been tracking the Black Fox property for years now, including the prior frustration of missed expectations and other challenges associated with earlier chapters of the site's development under the pre-merger ownership of Apollo Gold. Since the merger in mid-2010, however, it's been a different story entirely, and I don't think the market has recognized the operational momentum that has already been generated through the company's multiple accomplishements since that time.
The phase 2 open pit is on the ore, the underground mine is on the ore with 2 mining faces with a fast-track to 12 available faces, the amazing exploration success elsewhere within the complex offers a simple path toward a steady-state production increase from the annual run-rate of 104,000 ounces per year that the company is fast-approaching, and I ran out of room in the article to even duscuss the fact that Brigus' sprawling mill property itself sits atop an historic underground gold mine that is also a high-priority exploration target with meaningful potential. As an added bonus, CEO Wade Dawe has proven his mettle as a gifted dealmaker in spades by the nature in which he built Linear Gold and transformed it into Brigus. The company's other assets and retained invesment interests must also not be overlooked, and combined these underscore the extreme low valuation presently alotted to Brigus shares. It's a deep value play, and a roaring growth play, and that in my mind is the rare combination that can separate the great stocks from the good ones.
I'd love to know what you think of the company, the mine, and my write-up, sp please be sure to share your thoughts after reading and reccing the article. Thank you as always for your readership, and I wish each of you persistent peace of mind in the knowledge that these battered-down precious metal stocks will soon be back on the market's radar.