Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
When Michael Gentile, co-founder of Bastion Asset Management, was recently interviewed by Kitco Mining at the Xplor 2024 conference in Montreal, he said that the gold price rally has just begun to have an impact on miner valuations to this point, and that junior miners have tremendous upside potential. The next leg of the rally will come from mining stocks after the sharp rise in precious metals prices.
Gentile believes that the price of gold, which has risen by $1,000 per ounce in this bull market, is presenting a fantastic opportunity as investment sentiment in the junior mining sector is still quite subdued. Importantly, there are already signs that the rally will broaden into junior mining stocks.
Shares of large mining companies are starting to recover, as well as mid-sized producers, and those of producers with single assets, he added. In the junior mining sector, the share prices of some of the miners with development assets are also starting to rally, such as Skeena Resources. Therefore, the final stage is likely to be active retail investor and junior miners participation in the field.
At this stage, junior mining companies are still trading at very depressed levels.
Gentile has been following the commodities market for more than 25 years. “I’ve never seen a commodity hit record highs like gold and institutional investors can still be so apathetic,” he says. “Many mining stocks are still trading below their pre-COVID highs. Retail investor interest is also very low. The financing market is very depressed. This also means that opportunities in this sector remain intact.”
Gentile notes that gold stocks are valued near 70-year lows relative to the S&P 500. He concluded by adding, “Last year, I was very bullish on gold. This year, I’m very bullish on gold stocks. I think we may finally have a chance to see gold stocks outperform gold for the first time after all these years.”
