Equities

Emerging Bull Market in Gold: NevGold Positioned for Growth

NevGold poised for significant growth in emerging gold bull market, with strategic exploration and favorable valuation.

By Bill Bullington

4/3, 12:53 EDT
article-main-img

Key Takeaway

  • NevGold Corp. is poised for significant growth in an emerging gold bull market, with strategic exploration activities at Nutmeg Mountain and Limousine Butte.
  • With only 33% of shares free trading, any demand increase could sharply raise NevGold's stock price, currently undervalued.
  • Technical analysis predicts a breakout above resistance levels, marking the start of a new bull market for NevGold; rated an Immediate Strong Buy.

Emerging Bull Market in Gold

Technical Analyst Clive Maund has identified NevGold Corp. as a highly attractive investment opportunity, primarily due to the emerging bull market in gold. This bull market is anticipated to reach unprecedented levels due to the impending collapse of the current monetary system. NevGold, with its significant involvement in gold through its exploration activities at the Nutmeg Mountain Project in Idaho and the Limousine Butte property in Nevada, is positioned to capitalize on this trend. The company has initiated important Phase 2 Summer drilling programs at both sites, aiming to expand its gold resources. Additionally, NevGold's stock is considered to be at a favorable price point, as it has not yet responded significantly to the strengthening gold market. This situation is expected to change soon, potentially leading to amplified gains due to the relatively low number of free trading NevGold shares on the market.

Strategic Exploration and Valuation

NevGold's exploration efforts are concentrated in western North America, with the Nutmeg Mountain and Limousine Butte properties being the focal points. The Nutmeg Mountain property, in particular, is highlighted for its near-surface gold resources, which suggest that mining could be conducted at relatively low costs through open-pit methods. There is also potential for further exploration into the flanks and deeper areas of the property. The Limousine Butte property, located in the prolific Carlin Trend, is subject to royalties to Franco-Nevada and McEwen Mining but is also surrounded by prestigious neighbors, indicating promising prospects for NevGold's drilling results. The company's current valuation is modest relative to its peers, with significant potential for re-rating. Of the 90.8 million shares in issue, only about 33% are free trading, suggesting that any increase in demand could quickly lead to a higher share price.

Market Analysis and Investment Outlook

According to Clive Maund's analysis, NevGold is on the verge of entering a new bull market, with its stock still at an excellent entry point. The bear market that began in mid-2021 has concluded, with recent months showing a base pattern formation and positive divergence in the Accumulation line. The recent action indicates that NevGold is preparing to break out above resistance levels, potentially leading to a swift move to the next resistance at the CA$0.40 level. This breakout would signify the start of a new bull market for NevGold. The company is rated an Immediate Strong Buy for all timeframes by Maund. Additionally, Beacon Securities' Michael Curran recently added NevGold to his Updated Watchlist Report, further highlighting the stock's potential.

Street Views

  • Clive Maund, Technical Analyst (Bullish on NevGold Corp.):

    "The stock is regarded as the most attractive for investors here and is going forward for several very important reasons... it looks set to soon, and the gains should be amplified by the relatively low number of free trading Nevgold shares on the market." "Nevgold is looking most attractive for investors here as it is believed to be on the verge of beginning a new bull market, and it is still at an excellent entry point... This strongly implies that it is powering up to break out above the resistance, which would lead to a swift move to the next resistance at the CA$0.40 level that the long-term chart shows us is the boundary of the earlier major downtrend, so once it breaks out above the CA$0.40 level it will mark the start of a new bull market, and this looks set to happen soon."

  • Michael Curran, Beacon Securities (Neutral/Bullish mention without direct quote):

    "Of note is that Beacon Securities' Michael Curran put NevGold on his Updated Watchlist Report dated March 26."