With almost 7-10 analysts predicting a massive (nearly 500%) upward move for Element 79 Gold (ELEM), currently CDN018 cents a share, the potential for significant returns is undoubtedly cause for optimism and excitement.
· Element79 Gold Corp’s strategic shift from an exploration-focused company to a cash-flow-generating producer, with the upcoming production at the Lucero Mine, instills confidence and reassurance in the Company’s future.
- Management raising funds at CDN023 cents a share shows strong management confidence
- The consensus 12-month price gain approaches CDN0.87, a gain of about 450%
- ValueInvesting.io calls ELEM a buy
- Market cap only 2/3 of total assets.
- Flagship property located in Arequipa, Peru, with the intent to restart production beginning in 2024
- ·ELEM’s Lucero Mine is one of the highest-grade underground mines in Peru.
- Grades averaging 19.0g/t Au Equivalent (“Au Eq”) (14.0 g/t gold and 373 g/t silver).
- Five years of production ending in 2005, averaged 40,000oz+/year
- Intends to restart Lucero in 2024.
Importantly, ELEM has employed aggressive Debt and AP reductions, dramatically improving the balance sheet for more robust financial health and helping set the stage for future financings.Investors rarely get this strong consensus on a single gold explorer/producer. On April 23rd, 2024, the Company Press released great results. From the PR, 97 samples were sent for assays, 56 of which returned greater than 0.1 g/t gold (up to 8.55 g/t gold and 523 g/t silver. Several samples were also rich in base metals (up to 23.7% lead and 9.9% zinc), all of which underscores the richness of our project, further supporting the Company’s belief that a robust resource base can be delineated. (Actual assay numbers are shown in the PR)
An impressive opportunity may be presenting itself. As you can see above, the shares roll up, peak and moderate, then repeat. Last fall, the shares bottomed at CDN0.15 and rose to CDN0.24. To my non-technician’s eye, that pattern may be about to repeat itself-perhaps with the massive move noted above.
And apparently, a herd of analysts agree with me.
