James Hyerczyk is a Florida-based technical analyst, market researcher, educator and trader. James began his career in Chicago in 1982 as a futures market analyst for floor traders at the Chicago Board of Trade, the Chicago Mercantile Exchange, and numerous brokerage firms. He has been providing quality analysis for professional traders for over 40 years.
You’re probably familiar with the classic “rule of thumb” about gold – allocating 5-10% of your investment portfolio to gold for purposes of diversification.
It’s a sound strategy* that even billionaire investors follow, especially during uncertain times like we’re facing today.[4]
Ray Dalio founded the world’s biggest hedge fund, Bridgewater Associates. And when questioned during an interview, the billionaire approved of this investment approach.[5]
Dalio once said, “If you don’t own gold, you know neither history nor economics.”[6]
Some financial experts believe that having 10-15% of gold in your portfolio is an even better allocation.[7]*
Egyptian billionaire Naguib Sawiris aims higher still, allocating 20-30% of his own portfolio to gold.[8]
Regardless of the specific percentage, investors typically view gold as a store of value, a “safe haven” that can help serve as a buffer against stock market volatility and times of geopolitical uncertainty.
Gold has historically* acted as a hedge against inflation, rising in value when the U.S. dollar weakens and purchasing power wanes.
And speaking of a weak dollar…
The U.S. dollar’s purchasing power declined 7.4% between 2021 and 2022 because of inflation.[10]
In July 2023, CNN Business reported that the dollar’s decline was gaining speed as investors pared back their interest rate expectations.[11]
In August 2023, Forbes warned about the New York Fed recession probability indicator showing a 66% chance of a U.S. recession during the next 12 months.[12]
Federal Reserve Chair Jerome Powell admitted on August 25, 2023 that inflation remains too high.[13]
With all the economic uncertainty, it’s no wonder that some experts predict that gold prices are on track to hit another record high.[14] [15]
Morgan Stanley recently reported that this could be gold’s time to shine, advising that “now may be a good time to add it to your portfolio.”[16]
The investing public is catching on…
Americans now consider gold a better long-term investment than stocks for the first time since 2013, according to a recent Gallup survey.[17]
In a moment, I’ll share details about a company I’m following, called Nevada Canyon Gold (NGLD). I’m impressed with their unique strategy for investing in gold that holds explosive growth similar in potential to a junior gold stock, with less risk exposure.*
But first, it’s important to understand the various types of gold investments.
When considering gold, many investors automatically think about gold bullion, the physical metal itself that comes in gold bars and coins.
However, TD Ameritrade calls physical gold the “…most inefficient way to own gold.”[18]
While it can be comforting to own a tangible asset, accumulating significant physical gold has downsides. Among them are storage costs and insuring against the risk of loss or theft.
Other investors opt for gold ETFs, which invest either in physical gold or in the stock of gold mining companies.[19]
These funds do have the advantage of diversification, but returns may not be as high as owning a high-yielding stock or group of stocks.[20]
Gold futures and options contracts are available, but they can be complicated and extremely risky for investors who don’t have a deep understanding of the derivatives markets.[21]
And of course, there are also gold mining companies to invest in.
Some investors cross their fingers and hope for a moonshot with speculative junior miners. Others choose major miners, established companies mining on proven and sustainable claims.
The simple theory behind buying mining stocks is that, as the price of gold goes up, company profit margins go up as well, which investors hope is reflected in their stock prices.
But the price of gold is only one element of the underlying value of these mining companies.
Other factors can also affect the profitability of individual mining firms, including geopolitical uncertainty, climbing energy and labor costs, and corporate governance.[22]
No matter the pros and cons, the world’s demand for stable and secure investments are insatiable; creating a constant need for new gold discoveries and production.*
Fortunately, there’s an alternative approach to investing in the precious yellow metal – and few investors even know about it.
I’m talking about gold royalty and streaming companies – like publicly-traded Nevada Canyon Gold (NGLD).
This emerging natural resource company does not face the same risk factors* and large operating overhead as a conventional mining company, which include the price of the precious metal (gold), the price of oil or fuel, and other operating costs that impact profitability.[23]
If you’re not familiar with royalties and streaming, here are some basic facts about this frequently overlooked way of investing in gold…
While royalty and streaming companies are less well-known than other gold investments, they create value for their investors by providing funding for mining companies.[24]
While mining companies take responsibility for the mining and exploration work, royalty and streaming companies reap the benefit from the mine’s revenue or production.[25]
There are a number of reasons[26] why streaming and royalty agreements are attractive financing options for mining companies.
Building a mine is very capital-intensive. If a mining company finances mine construction by issuing shares (a very common practice), those shares would suffer substantial dilution. In addition, even if a mining company could raise mine-building funds via debt, that debt would need to be repaid.
A streaming arrangement eliminates this issue of share dilution and repaying millions of borrowed dollars, which could become very difficult if the mine is not quickly profitable.
Royalty and streaming becomes quite appealing when a company needs capital for purposes like funding growth projects, engaging in mergers and acquisitions, or further reducing its debt load.
Since the inception of the mining royalty sector in the 1980’s and the streaming sector in the 2000’s, these alternative forms of financing have grown from $2 billion in 2010 to over $15 billion in 2019.[27]
This increase in popularity springs from an environment in which raising capital in the mining sector has been challenging within both the public debt and public equity markets.
It not only helps explain why overall interest in alternative financing in the mining sector has grown…
But it also explains why the timing could not be better for a company such as Nevada Canyon Gold (NGLD).
Nevada Canyon Gold (NGLD) does not intend to compete with larger, more established royalty and streaming companies. Instead, NGLD intends to become a source of royalty and streaming packages for them.
Nevada Canyon Gold’s (NGLD) strategy is to acquire royalty and streaming contracts on smaller producing properties, pre-production, or pre-resource properties. They then combine them into a larger consolidated package, which they plan to sell to a more established producer.
The much higher valuation as a package versus individual small royalties can create potential for a higher profit margin in the process.
And with the way royalty and streaming contracts are typically structured, when there is expansion of the resource base, investors gain exposure to the increase in asset value.[28]
The royalty value on pre-production and fully permitted properties typically increases by 2-3 times once mine production financing is secured.[29]
Another important detail about royalty and streaming companies is that they tend to have stable and predictable costs that are lower than those of mining companies. Their administrative costs are usually minimal due to their smaller staffing requirements.[30]
In fact, Nevada Canyon Gold (NGLD) has no employees or payroll commitments and an incredibly limited overhead. In fact, NGLD’s 2 main principles effectively manage the company, allowing their cost to operate to be just pennies compared to the giants.
For example, the gold mining behemoth Barrick Gold has a $27.9 billion market cap and 23,000 employees.[31]
Now consider the gold-focused royalty and streaming company Franco-Nevada…
This giant in the industry has a market cap of $26.6 billion, similar to that of Barrick Gold. But Franco-Nevada has only 45 employees![32]
Nevada Canyon Gold’s (NGLD) business plan sets it apart as a kind of hybrid royalty and streaming company.
In addition to the traditional duo of royalty and streaming deals, the 3rd hub in Nevada Canyon Gold’s (NGLD) business model is what the company calls its “Exploration Accelerator” projects.
To me, these look like royalty deals on steroids!
The company locates undervalued or distressed mineral exploration properties and provides investment capital, along with their geological and engineering expertise. They add even more value to the projects by increasing the geological potential of the properties.[34]
The end goal is to sell the accelerator property to other mining companies for a premium return without all the large Cap-Ex expenditures.[35]
Nevada Canyon Gold (NGLD) expects to recover their costs, retain shares in the purchaser’s company, and create and retain a royalty in the property. Because it does not participate in the actual mining, NGLD avoids the high costs, time, and risks of putting a mine into production.*
Currently, Nevada Canyon Gold (NGLD) holds royalty interests, secured by mineral rights, in four Accelerator Properties.[36] And given the company’s name, it’s not surprising that three of them are in Nevada.
Nevada is continuously rated one of the best places to explore and mine gold throughout the world. In fact, Nevada produces more gold than any other state.[38]
That’s why Nevada Canyon Gold (NGLD) focuses its primary efforts there, notably near the world-famous Carlin Trend.
The Carlin Trend is a prolific gold-producing area. This geologic region encompasses 190 square miles, and ranks as the world’s second-largest gold concentration. [39]
These unique deposits have an endowment of 255 million ounces of gold from past production and current reserves and resources.[40]
Some analysts believe that the unexplored area still contains over 200 million ounces of gold![41]
I think you can see why Nevada Canyon Gold (NGLD) has added the following Carlin Trend property to its Accelerator Project portfolio.
Accelerator Property #1: The Swales Project
Nevada Canyon Gold’s (NGLD) Swales property consists of 40 unpatented mining claims (800 acres) within the Carlin Trend.[42]
The property was historically held by private interests. With minimal modern-day exploration, the Swales property remains underexplored. Showing geologic promise, the property is underlain by the ideal host rocks for a Carlin-type gold deposit.[43]
The Swales Project is situated within 13 miles of two of the Carlin Trend’s most prolific producing mines, Nevada Gold Mine’s Gold Quarry Mine and Goldstrike Mine.[44]
But there’s much more to the Nevada focus for Nevada Canyon Gold (NGLD).
Recent geological findings and historical evidence have also focused attention on the Walker Lane Trend Zone, a 60-mile wide structural corridor located west of the Carlin Trend.
This area is famous for the Comstock Lode, with its silver discovery that made Nevada an internationally famous precious metal hub in the 1850’s.
Geological studies currently point to substantial untapped gold, silver, and other metal resources in the Walker Lane Trend, with the potential to set new production records in Nevada.[46]
This is promising news for Nevada Canyon Gold (NGLD) as it builds its diversified portfolio of mineral rights and royalty interests in the United States.
NGLD now holds royalty interests, secured by mineral rights, in two Accelerator Properties in the Walker Lane zone.
Accelerator Property #2: The Loman Project
This property consists of 30 claims (600 acres) in the Walker Lane Trend, which you’ve seen is one of Nevada’s historical highest-grade mining districts. The Loman Property is located in close proximity to several past-producing mines, including the Pamlico Gold Project. This speaks well for its potential.[47]
Because the property has been in private hands for most of its history, it remains significantly underexplored — with exceptional potential for new discoveries on several exploration targets within multiple zones.
Accelerator Property #3: The Agai-Pah Project
Also located within Nevada’s prolific Walker Lane Trend, the Agai-Pah property consists of 20 unpatented mining claims (400 acres).[48]
With numerous historical workings, the property has a small-scale, high-grade production history of gold, silver, copper, lead, zinc, barium, and barite.[49]
Having been held by private interests for most of its history, the Agai-Pah property still remains very underexplored.
Bringing to bear modern-day exploration technologies on this site could quickly open this project to significant new gold and other mineral findings.
Continuing its goal of diversification in geopolitically safe operating jurisdictions, Nevada Canyon Gold’s (NGLD) fourth Accelerator Property is located in the state of Idaho.
Accelerator Property #4: The Belshazzar Project
This property consists of 10 unpatented mineral claims and 7 placer mineral claims (200 acres) in Idaho’s Quartzburg mining district, not far from Boise. This area has produced over 2.8 million troy ounces of gold from placer and lode mines.[50]
Hosting the past producing Belshazzar mine, the property has approximately 3,000 feet of previously completed underground workings.[51]
From operations dating back to 1914, several high grade specimen rocks have been reported, including a nugget yielding 12 ounces in gold equivalent.[52]
Some of the recovered ore was so rich in gold density that miners simply shipped unprocessed ore rather than milling and refining, leaving scant records of what was actually produced.[53]
In recent years, a metal detector search of a waste rock dump revealed stunning discoveries in that discarded rock. The search produced hundreds of wire gold specimens, ranging from microscopic size to over 20 troy ounces.[54]
This is another property that has been privately held and still remains relatively undeveloped with no known modern day exploration (in particular, drilling), with exceptional potential for new discoveries on several exploration targets with multiple zones.
In addition to the Accelerator Projects, Nevada Canyon Gold (NGLD) is building a royalty portfolio of other properties[55]:
Of course, the success of a royalty and streaming company depends on its ability to negotiate favorable agreements with mining partners. That makes the quality of management and their deal-making skills crucial factors in the company’s performance.
Nevada Canyon Gold (NGLD) has a strong team supporting its efforts[60], notably led by Alan R. Day, the President, CEO, and Director. With over 30 years’ experience in precious metals exploration and mining, Mr. Day's background includes key land, man and acquisition roles acting as a consultant/advisor to major companies like Newmont Mining, Barrick Gold, and Anglo American, all active in the Carlin Trend and within Nevada. His extensive industry connections make him an invaluable resource when it comes to sales and decision-making.
Also leading acquisition efforts is Director and former Governor of Nevada, Robert List. With deep roots in Nevada politics and power, Governor List boasts strong connections in Nevada's mining industry, and has a reputation for a boots-on-the-ground, get-it-done mindset. This serves him well in making the contacts that can bring new projects to the Company’s asset portfolio, both for buying and selling.
On the financial side, Jeffrey A. Cocks, Chairman and Director, brings significant venture capital experience. He has a track record of founding and aiding publicly traded companies, particularly in natural resources and mineral exploration.
Ryan McMillan, Vice President of Operations, has most recently served as a private consultant advising business in structuring, corporate mergers, acquisitions, finance, restructuring, recapitalization, creating exit strategies, primarily utilizing traditional IPO’s and Alternative Public Offerings.
Using its exclusive knowledge and connections, Nevada Canyon Gold (NGLD) enjoys privileged access to opportunities, providing the company with a unique edge. This enables them to identify and secure mineral rights at significantly discounted prices compared to their potential upside future worth.*
“We concentrate on buying the right properties with the right gold resources, properties that can withstand a downturn in the mining industry. A recession becomes a buying opportunity for us. Even in a declining market, the value of assets doesn’t really decline. So we expect to do well and grow whether times are good or bad.”*
– Alan R. Day, President, CEO, and Director of Nevada Canyon Gold (NGLD)
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]
If you don’t have your gold allocation yet, now’s the time to take action by showing this report to your investment advisor or broker immediately.
Nevada Canyon Gold (NGLD) is a uniquely structured natural resource company focused on gold royalties, streaming, and exploration acceleration.
Mineral rights and royalties the company acquires from accumulating a diverse portfolio of properties could provide exceptional opportunity for growth in NGLD shareholder value.*
Getting in front of this now could be a highly rewarding decision.* It’s an ideal time to consider an early entry into a strongly growth-oriented venture.
While investing in their company has a potential for higher rewards than traditional gold mining operations, there is always risk. And, of course, past performance is no guarantee of future results.*
I am not an investment advisor. But the “rules” I go by are these:
Regardless, I believe my analysis of the potentially huge reward of Nevada Canyon Gold (NGLD) is a good one.*
I wish you much success in all your investments.
– James Hyerczyk | EdgeOnTheStreet.com
I’d like to offer you access to Nevada Canyon Gold’s Investor Presentation, which you can have at no charge.
By signing up above you will receive the Edge on the Street newsletter which is always free. You can unsubscribe at any time and view our Privacy Policy here.
ADVERTISEMENT DISCLAIMER
* See our Important Notice and Disclaimer above for a detailed discussion on compensation, risks, atypical results, and more.
* See our Important Notice and Disclaimer below for a detailed discussion on compensation, risks, atypical results, and more.
[1] https://geology.com/minerals/gold/uses-of-gold.shtml
[2] https://www.mckinsey.com/industries/metals-and-mining/our-insights/streaming-and-royalties-in-mining-let-the-music-play-on
[3] https://www.cnbc.com/2023/08/11/gold-prices-to-breach-all-time-highs-with-some-calling-for-2500.html
[4] https://daneklocke.medium.com/why-billionaire-investors-turn-to-gold-and-silver-in-uncertain-times-c170e938812a
[5] https://www.businessinsider.com/ray-dalio-bridgewater-everyone-should-have-gold-principles-2017-9
[6] https://daneklocke.medium.com/why-billionaire-investors-turn-to-gold-and-silver-in-uncertain-times-c170e938812a
[7] https://groww.in/blog/how-much-of-your-portfolio-should-be-invested-in-gold
[8] https://www.cnbc.com/2021/08/10/egypt-billionaire-naguib-sawiris-says-quarter-of-portfolio-should-be-gold.html
[9] https://www.visualcapitalist.com/billionaire-investors-precious-metals/
[10] https://www.bls.gov/cpi/factsheets/purchasing-power-constant-dollars.htm#:~:text=This%20means%20that%20the%20purchasing,and%202022%20because%20of%20inflation.
[11] https://www.cnn.com/2023/07/28/business/premarket-stocks-trading-dollar-decline/index.html
[12] https://www.forbes.com/advisor/investing/is-a-recession-coming/
[13] https://www.cnbc.com/2023/08/25/fed-chair-powell-calls-inflation-too-high-and-warns-that-we-are-prepared-to-raise-rates-further.htm
[14] https://www.cbsnews.com/news/gold-prices-may-soon-hit-record-high-why-you-should-invest-now/
[15] https://www.cnbc.com/2023/08/11/gold-prices-to-breach-all-time-highs-with-some-calling-for-2500.html
[16] https://www.morganstanley.com/articles/price-of-gold-rising
[17] https://finance.yahoo.com/news/americans-view-gold-better-investment-035514609.html
[18] https://tickertape.tdameritrade.com/investing/gold-investing-strategies-16052
[19] https://money.com/everything-you-need-to-know-about-gold-etfs/
[20] https://www.cnbctv18.com/personal-finance/non-physical-gold-pros-and-cons-of-etfs-sovereign-gold-bonds-explained-13211932.htm
[21] https://invest.equifund.com/offering/nevadacanyongold/details
[22] https://tickertape.tdameritrade.com/investing/gold-investing-strategies-16052
[23] https://www.visualcapitalist.com/sp/how-precious-metals-royalty-and-streaming-companies-create-value/
[24] https://www.visualcapitalist.com/sp/how-precious-metals-royalty-and-streaming-companies-create-value/
[25] https://www.visualcapitalist.com/sp/how-precious-metals-royalty-and-streaming-companies-create-value/
[26] https://www.mckinsey.com/industries/metals-and-mining/our-insights/streaming-and-royalties-in-mining-let-the-music-play-on
[27] https://www.mckinsey.com/industries/metals-and-mining/our-insights/streaming-and-royalties-in-mining-let-the-music-play-on
[28] https://invest.equifund.com/offering/nevadacanyongold/details
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[31] https://stockanalysis.com/stocks/gold/employees/
[32] https://stockanalysis.com/stocks/fnv/employees/
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[35] https://nevadacanyongold.com/business-model/
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[41] https://www.visualcapitalist.com/sp/everything-you-need-to-know-on-carlin-type-gold-deposits/
[42] https://nevadacanyongold.com/swales-property/
[43] https://nevadacanyongold.com/swales-property/
[44] https://nevadacanyongold.com/swales-property/
[45] https://markettactic.com/nevadas-carlin-trend-the-largest-gold-producing-trend-in-north-america/5542621/
[46] https://nevadacanyongold.com/loman-property/
[47] https://nevadacanyongold.com/loman-property/
[48] https://nevadacanyongold.com/agai-pah-property/
[49] https://nevadacanyongold.com/agai-pah-property/
[50] https://nevadacanyongold.com/the-belshazzar-property/
[51] https://nevadacanyongold.com/the-belshazzar-property/
[52] https://nevadacanyongold.com/the-belshazzar-property/
[53] https://nevadacanyongold.com/the-belshazzar-property/
[54] https://nevadacanyongold.com/the-belshazzar-property/
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[56] https://nevadacanyongold.com/palmetto-royalty/
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[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/
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[66] https://invest.equifund.com/offering/nevadacanyongold/details
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[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
[76] https://www.cnbc.com/2022/12/22/gold-at-4000-analysts-share-their-2023-outlook-for-prices.html
[77] https://www.cnbc.com/2023/08/11/gold-prices-to-breach-all-time-highs-with-some-calling-for-2500.html
Ad Note References:
https://moneyweek.com/investments/commodities/gold/605038/gold-has-been-incredibly-boring-to-own-but-thats-no-bad-thing
https://www.nasdaq.com/articles/gold-forecast-bullish-price-chart-supports-$3000-target-in-2024
https://finance.yahoo.com/news/americans-view-gold-better-investment-035514609.html
https://www.cbsnews.com/news/investing-in-gold-bars-coins-pros-and-cons/#:~:text=The%20more%20physical%20gold%20you,still%20need%20to%20insure%20it
https://tickertape.tdameritrade.com/investing/gold-investing-strategies-16052
https://www.investing.com/analysis/what-does-biden-mean-for-gold-200546831
https://www.cnbc.com/2023/08/11/gold-prices-to-breach-all-time-highs-with-some-calling-for-2500.html
https://blog.gorozen.com/blog/gold-bull-market-prices
https://www.georgegammon.com/jim-rickards-his-gold-price-prediction-explained-50000-is-possible-2/.
https://www.forbes.com/advisor/investing/digital-dollar/
https://aheadoftheherd.com/ascent-of-central-bank-digital-currencies-bodes-well-for-gold-richard-mills/.
https://goldco.com/what-effect-would-a-digital-dollar-have-on-gold-and-silver-prices/.
https://www.gold.org/goldhub/gold-focus/2021/11/central-bank-digital-currencies-and-implications-gold-market.
https://www.cbsnews.com/news/gold-prices-may-soon-hit-record-high-why-you-should-invest-now/
https://www.morganstanley.com/articles/price-of-gold-rising
https://invest.equifund.com/offering/nevadacanyongold/details
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]