Midas Gold recently reported their third quarter financial results and also provided recent updates regarding the company’s Idaho project, the Golden Meadows. Midas Gold reported a total of 700 thousand dollars profit because of recent mark-to-market gains. In addition, the company announced that the cash and the equal position of 13M dollars, and also a capital position amounting to 12M dollars, is enough to help the company get through recent pre-feasibility study can be a major milestone for the company.
Midas Gold investors recalls that the company was suggested previously by analysts because of compelling speculation stocks, considering the proposed project is actually a low-cost way in producing mine with minimal risk jurisdiction.
It was also stressed that the company stock’s speculative nature will lead to two additional risks, timeline and also financing risk. This project, though still years away before it produces cash-flow after the feasibility study, permits, financing, and also construction will last 3 years before completion.
The company’s financing overall risk is worse because of the 880M dollar capex overall estimate, added to the Midas Gold’s 65M dollar valuation. Until the overall price of gold rises, Midas is almost guaranteed to be searching for a new JV partner or even an acquirer.
This is the right time for Midas Gold to consider a more speculative position, more so if the company is trying to estimate the best time for gold prices to bottom out, which is likely to happen in the near future.
Interested investors who choose to be a bit conservative should consider waiting for the release of the company’s pre-feasibility study before investing.