An interesting new stock to watch

by JDH on October 11, 2016

The gold market continues to bounce around, doing nothing, so let’s discuss instead an interesting new gold (and copper) play: JDL Gold Corp.

On August 15, 2016 three companies announced their amalgamation to form JDL Gold Corp.:

Lowell Copper, Gold Mountain Mining and Anthem United Announce a Proposed Combination to Create a New Multi-Asset Gold and Copper Company

Further details, including announcing the name JDL Gold Corp., were announced on August 31, 2016

This is big news, because three good companies, with good management, will become one great company.

The merger was completed on October 7, with the three predecessor companies ceasing to exist, and JDL (ticker symbol JDL.V) beginning to trade.  The company is so new that their website is still under construction, but you can find the JDL Corporate presentation here, and here’s the gist of it:

  • current market cap: $135 million Canadian
  • cash: $65 million, so ready to make some acquisitions

There are three projects:

  1. Elk Gold in British Columbia, past producing mine
  2. Warintza in Ecuador, lots of copper, kicking off cash now
  3. Koricancha Mill in Peru, huge gold processing capacity

So you have current gold production, a historic gold mine with a high grade resource, and a big copper project.  This is a diversified portfolio, positioned for growth.

The key is management: senior people, with a lot of their own money on the table.

It won’t be $2 forever, so if you want a diversified, moderate risk investment with upside, here you go.

I’ll monitor it and report any further developments.

Thanks for reading; see you next week.