GOLDEN REASON #1: Gold Offers Investors Multiple Advantages
Investors prefer gold for its wealth preservation, store of value, inflation hedge, portfolio diversification, future upside, and investment fundamentals.[61]
The gold market has outperformed many key asset classes over a number of periods, and experiences less volatility than many markets. Gold has fared especially well during recessions.[62] What’s more, analysts are predicting that gold prices will continue to rise, and are predicting record highs.[63]
GOLDEN REASON #2: Royalty & Streaming – An Attractive Gold Investing Strategy
Royalty and streaming companies provide capital to mine operators and explorers in exchange for a percentage of revenue or metals produced from the mine. These agreements typically last for the entire life of a mine, no matter who owns it.[65]
Leverage in gold royalty investments allows investors to potentially amplify their returns while managing risk through diversification. It provides an opportunity to benefit from rising gold prices and mining successes without the operational and financial risks associated with owning and managing mining operations directly.[66]*
GOLDEN REASON #3: Sound Business Model
Nevada Canyon Gold (NGLD) seeks to create shareholder value by offering alternative financing agreements to junior mining companies that guarantees NGLD the rights to future cash flows on metals production.
The company’s plan is to generate near-term revenue through mineral property development via gold resource growth and subsequent sale of “in the ground gold resources”, while generating long-term revenue through life-of-mine royalties and streams.[67]
The business model also includes the purchase of existing royalties from third parties, as well as optioned sales of properties that provide ongoing revenue and eventual royalties.[68]
Nevada Canyon Gold (NGLD) believes it can create substantial upside value to the initial capital and equity invested by the company with its low overhead approach and unique business model.
GOLDEN REASON #4: Geopolitical Stability
The U.S. has underinvested in the mining sector for years, forcing it to import a significant portion of critical minerals from increasingly hostile nations.[69]
To lower risk, NGLD focuses on properties in the United States, and Nevada in particular.
GOLDEN REASON #5: Location, Location, Location
Gold production in Nevada is higher than any other state, accounting for 76% of all gold produced in the U.S.[70] Nevada Canyon Gold (NGLD) has focused on properties in Nevada’s Walker Lane and Carlin Trends, two of the best gold-producing regions in North America.
GOLDEN REASON #6: Not Threatened by Competition
While the current mineral royalty marketplace is competitive, Nevada Canyon Gold (NGLD) does not intend to compete with already successful, well-financed royalty companies. Instead, they plan to focus on becoming a source of royalty and streaming packages for them.
The company is focused on acquiring royalties on smaller properties, aggregating them into a royalty package, then selling the packages. This creates more potential upside and a much higher valuation as a package rather than individual smaller royalties, that could create a much higher potential profit margin in the process.*
GOLDEN REASON #7: Stellar Management Team With Unique Nevada Knowledge and Connections
The company’s formidable management team is led by Alan R. Day, President, CEO, and Director, with over 30 years of precious metals exploration and mining expertise. Another Director on the Nevada Canyon Gold (NGLD) team is former Nevada Governor Robert List, renowned for his extensive political and mining industry experience. Jeffrey A. Cocks, Chairman and Director, and Ryan McMillan, Vice President of Operations, round out the expert team.
As the largest shareholders in the company, founders have vended their own assets and capital into the company. Taking an equity position demonstrates their commitment to the success of NGLD.
GOLDEN REASON #8: Mineral Rights & Royalties are Highly Liquid
Nevada Canyon Gold's (NGLD) mineral rights and royalty interests offer high liquidity, making them readily saleable at any time. The potential upside valuations of royalties increase substantially from pre-resource properties to producing mines. Exploration potential of a pre-resource property increases the gold resource and the royalty’s value. The royalty value on pre-production & fully permitted properties typically increases by 2-3 times once mine production financing is secured.[71]
Importantly, the gold doesn't need to be physically extracted before it can be sold. This attractiveness often leads producing companies to competitively bid for new discoveries, especially in the Walker Lane and Carlin Trend.
GOLDEN REASON #9: Financial Stake Remains Secure
Nevada Canyon Gold’s (NGLD) financial interests are built on mineral and royalty rights, not solely on exploration rights.
This means that even if initial third-party exploration efforts prove unsuccessful, the Company's financial stake remains secure.This provides investors with robust protection against the typical downside risks associated with junior gold investments.*
GOLDEN REASON #10: Less Risk, More Growth*
Nevada Canyon Gold (NGLD) can attain a high level of diversification throughout Nevada and elsewhere, encompassing a wide spectrum of multiple prospects and potential revenue streams.
This contrasts with junior exploration firms that typically concentrate their resources on a single prospect.This strategic approach allows third-party exploration companies to shoulder all the large cap-ex costs and risks associated with site development and resource growth via exploration. Meanwhile, NGLD enjoys the benefits, and its carried interest in each prospect grows in value over time. As these resources are meticulously documented, the value of these discoveries directly accrues to the Company at no additional cost, even while the resources remain underground.
GOLDEN REASON #11: Accelerator Properties
Nevada Canyon Gold (NGLD) currently holds royalty interests, secured by mineral rights, in four Accelerator Exploration Projects both in and outside of the prolific Walker Lane and Carlin Trends. All these projects have past producing small-scale, high grade mines on them.
Update:Phase I exploration programs have recently begun on the Agai-Pah and Loman Properties, located in Nevada’s Walker Lane shear zone.[72]Planning is also complete on the Phase I exploration program on the Belshazzar Property in Idaho.[73]
GOLDEN REASON #12: Bright Prospects for the Royalty & Streaming Sector
As alternative forms of mine financing, the royalty and streaming industry has already grown from $2 billion in 2010 to over $15 billion in 2019.[74]
McKinsey & Company predicts that the streaming sector will continue to see favorable returns relative to investments in physical gold or gold equities, continuing the trend set over the past decade.[75]
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[61] https://www.visualcapitalist.com/billionaire-investors-precious-metals/
[62] https://nevadacanyongold.com/wp-content/uploads/2021/06/NevadaCanyonGold_Presentation_V1.pdf
[63] https://www.cbsnews.com/news/gold-prices-may-soon-hit-record-high-why-you-should-invest-now/
[64] https://www.usglobaletfs.com/insights/gold-remains-one-of-the-best-performing-assets-of-2022/
[65] https://www.visualcapitalist.com/sp/how-precious-metals-royalty-and-streaming-companies-create-value/
[66] https://invest.equifund.com/offering/nevadacanyongold/details
[67] https://invest.equifund.com/offering/nevadacanyongold/details
[68] https://invest.equifund.com/offering/nevadacanyongold/details
[69] https://www.realclearenergy.org/articles/2023/08/09/the_critical_minerals_quagmire_hurts_consumers_971675.html
[70] https://nevadacanyongold.com/wp-content/uploads/2021/06/NevadaCanyonGold_Presentation_V1.pdf
[71] https://nevadacanyongold.com/wp-content/uploads/2021/06/NevadaCanyonGold_Presentation_V1.pdf
[72] https://nevadacanyongold.com/nevada-canyon-announces-exploration-programs-begin-on-the-agai-pah-and-loman-properties/
[73] https://nevadacanyongold.com/nevada-canyon-announces-initial-exploration-program-on-the-belshazzar-project/
[74] https://www.mckinsey.com/industries/metals-and-mining/our-insights/streaming-and-royalties-in-mining-let-the-music-play-on
[75] https://www.mckinsey.com/industries/metals-and-mining/our-insights/streaming-and-royalties-in-mining-let-the-music-play-on