Long-time mining writer and investor Gwen Preston, who is better known by the moniker of the “Resource Maven” is voting with her wallet that Thesis Gold could be on to something special at its Ranch property in British Columbia’s, Golden Horseshoe region.
In a January 19th article first seen by her subscribers, the Maven writes that “I am not early on Thesis, not by any means. The company debuted about a year ago at roughly $1. It’s trading just above $2 today and carries a $93 million market cap. I already missed a double but I think there is real potential that the Ranch project in central BC turns into much more than the market is currently seeing.”
“Just as importantly, in terms of my rationale for entering now, I think Thesis could leverage gold nicely over the next year. Results thus far have built anticipation that Ranch will become a notable gold asset. If results continue in that manner, then Thesis will offer a rare thing: a gold stock chart with positive momentum.”
The Resource Maven’s detailed look at Thesis and why she’s investing is available HERE.
Thesis received a rather substantial vote of confidence with the January 21st news that Clarus Securities was leading a $24.5 million Flow Through Share Offering with the majority of the stock priced at $2.70 per share. It’s our understanding that Thesis was offered substantially more money but with the closing of the Offering and with cash on hand, the company will have more than $40 million in the treasury. In short, these funds more than cover this year’s aggressive exploration program, which management is currently planning and will release its details soon.
In addition to the first three sets of excellent drill results that the company has announced since early October, we feel retail and institutional investors are not only buying into the management team, but the fact that multiple assays from the 2021 exploration program will be announced over the next few months.
On the topic of the importance of the retail investor, we’ve been tracking market activity since this past summer and one point stands out in addition to the noteworthy jump in the stock price, which this week hit a new high of $2.33. You’ll see in the chart below that there were 15 investment houses trading the stock in August and that rose to 31 houses by December.
Definitely, Clarus and Cormark Securities have been active in the market and we’ve seen new institutions acquiring positions but the large increase in discount account activity has most certainly made a big difference when it comes to liquidity.
The Howard Group (HG) is not a registered investment advisor and as such, individuals should consult a registered investment advisor prior to making any investment decisions. The information presented was obtained from sources believed to be reliable but is not guaranteed, is not all conclusive and should not be relied upon as the sole source of information/opinion for making an investment decision. The Howard Group receives remuneration for Capital Market Communication activities and HG or its employees may own securities in client companies.