Some of their Mexico properties have geo-politcal risk, though he likes Mexico as a whole to mine. They have cash and are getting this Mexico mine into production. They just had an EPS miss. This could be a buying opportunity.
Great deposit. Had some start-up issues but solved them. Issues now with safety and work blockages in Guerrero, Mexico, which is a tough place. Things they can't control are killing them.
He loves their asset. Open pit in Mexico. It is extremely cheap on a valuation basis. Striking workers blocked the entrance to the mine, shutting it down. They have quite a bit of debt. You want to manage your risk by having it as part of a larger basket of these equities.
(Top Pick Jul 12/16, Down 22.42%) They are in Mexico and are a low cost producer. They have higher grade material they have discovered that won’t come on stream for a couple of quarters. They showed an earnings miss a couple of quarters ago and it makes this a great entry point. This is his only gold holding.
With this, you expose yourself to certain risks, but you are exposing yourself to a very big system.
He tends not to buy a company that is building a mine, but he bought this one because they were close enough to the end and he didn’t expect any CapX surprises. This has a great little asset, a nice simple operation. A low cost operation which generates very strong margins in this kind of environment.
A new emerging gold producer in Mexico. Trading at 7X cash flow and 1.1X NAV. Those are bottom end of the range multiples, and he expects that to re-rate as they develop their mine, which is ramping up right now.
Torex Gold Resources is a Canadian stock, trading under the symbol TXG-T on the Toronto Stock Exchange (TXG-CT). It is usually referred to as TSX:TXG or TXG-T
In the last year, 1 stock analyst published opinions about TXG-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Torex Gold Resources.
Torex Gold Resources was recommended as a Top Pick by on . Read the latest stock experts ratings for Torex Gold Resources.
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1 stock analyst on Stockchase covered Torex Gold Resources In the last year. It is a trending stock that is worth watching.
On 2022-05-20, Torex Gold Resources (TXG-T) stock closed at a price of $13.27.