Top Picks in Silver
Bob Moriarty

Bob Moriarty of 321 Gold discussed the state of the gold and silver market with Streetwise Reports, and provided a look at his favorite companies this month. 

Analyst Bob Moriarty, founder of 321 Gold and 321 Energy, spoke with Streetwise Reports about recent downturns in the gold and silver market.

Moriarty believes that current events, especially rising tensions in Israel and Ukraine and recent tensions between Iran and Pakistan, will have an impact on precious metals as uncertainty rises. Despite this, Moriarty said that precious metals are in a neutral position.

Moriarty commented, "It's going to take something massive to change it. Now, I don't doubt for a minute that there are massive things on the horizon, but for now, gold and silver are going down."

Opportunities for Investors

However, Moriarty views this current downtrend in precious metals as an opportunity in disguise for investors.

In his opinion, this is an opportunity for investors to increase their holdings: "The gold shares and silver shares are absurdly cheap. I think that's a very good thing. I am counter-cyclical to the market. I like the markets going down. It's a good thing because it allows me to add positions."

In his opinion, investors who buy positions in the market now could see those shares do well in one or two years.

A Slam Dunk Safe Project

Moriarty referred to Dolly Varden as "one of those slam dunk, safe projects" and said that he still believes it has "enormous potential for the future."

One of the characteristics he highlighted about the company's stock was its potential to swing upwards and net higher profits for investors: "Dolly Varden has great volatility, and it has a substantial trading volume, so I think it's a wonderful stock to trade."

According to the company's investor presentation, it has a number of catalysts, including plans to test exploration targets on the Kitsault Valley trend, as well as follow up on expansion efforts on the Wolf and Homestake Ridge regions. 

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 0.1% of the company, as Director Darren P. Devine owns 0.07% of the company with 0.20 million shares, Director James Anthony Sabala owns 0.02% of the company with 0.05 million shares, and Director Robert John McLeod owns 0.01% of the company with 0.04 million shares.

Strategic investors own approximately 41.49% of the company, as Fury Gold Mines, Ltd. owns 22.01% of the company with 59.50 million shares, Hecla Mining Co. owns 10.00% of the company with 27.04 million shares, and 2176423 Ontario, Ltd., owns 9.48% of the company with 25.63 million shares.

Reuters reports that Institutional investors owns approximately 12.79% of the company, as Fidelity Management & Research Company L.L.C. owns 6.29% of the company with 17.00 million shares, Sprott Asset Management L.P. owns 2.01% of the company with 5.44 million shares, E.T.F. Managemers Group, L.L.C. owns 1.65% of the company with 4.46 million shares, Mirae Asset Global Investments (U.S.A.) L.L.C. owns 1.35% of the company with 3.66 million shares, U.S. Global Investors, Inc., owns 1.02% of the company with 2.75 million shares, D.W.S. Investment GmbH owns 0.28% of the company with 0.75 million shares, and Charteris Treasury Portfolio Managers Limited owns 0.19% of the company with 0.50 million shares.

There are 270.34 million shares outstanding and 157.87 million free float traded shares, while the company has a market cap of CA$150.36 million and trades in the 52-week period between CA$0.58 and CA$1.24.

Moriarty stated, "People don't understand the stock, and because they don't understand that stock, they don't give it the credit that they should."

Moriarty believes that the company's drill results, which saw 140 grams per tonne of silver equivalent over 136m, will drive the value of shares back up, making this a prime opportunity for investors to get in now. Moriarty stated, "It's going to be one of the top performers over the next year or two because people don't get it."

Bob Moriarty also covered Eloro Resources on 321 Gold in September of 2023, where he spoke positively about the company. Moriarty highlighted the mine's auspicious location in a volcanic caldera, which is expected to hold massive amounts of silver mineralization at an estimated 2 or 3 billion ounces.

Moriarty commented on the company's mining strategy and said, "They had a choice: they could either go for a big number in the number of tonnes, or they could go for a high value of the minerals." According to Moriarty, the company's stock represents an excellent opportunity for investors to buy in, as he expects the value to increase.

According to the company's investor presentation, there are a number of catalysts on the horizon, including an upcoming PEA and the pending results of recent definition drilling. 

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 17.92% of the company.

CEO Thomas Geoffrey Larsen owns 9.14% of the company with 7.03 million shares, Director Francis Sauve owns 2.34% of the company with 1.80 million shares, Vice President Jorge Estepa owns 1.96% of the company with 1.50 million shares, CFO Miles A. Nagamatsu owns 1.73% of the company with 1.33 million shares, Lead Director Alexander S. Horvath owns 1.10% of the company with 0.84 million shares, Director Dusan P. Berka owns 0.68% of the company with 0.52 million shares, Vice President Christopher Holden owns 0.50% of the company with 0.38 million shares, and Director Richard Gerald Stone owns 0.47% of the company with 0.36 million shares.

Institutional investors own approximately 19.12% of the company, as Crescat Capital, L.L.C. owns 16.86% of the company with 12.96 million shares, while Jupiter Asset Management Ltd. owns 2.26% of the company with 1.73 million shares.

There are 76.85 million shares outstanding with 63.07 million free float traded shares, while the company has a market cap of CA$94.04 million and trades in the 52-week period between CA$1.41 and CA$4.29.

Still a Favorite

In Moriarty's words, "The technical term for it is they have a lot of gold." In his opinion, the company's stock is undervalued and should improve as the company continues to deliver consistently excellent exploration results.

Moriarty said, "I think New Found Gold is like putting money into a savings account." In a ringing endorsement for the company, Moriarty stated, "I think if I was to only own one gold stock for the long term, it would be New Found Gold."

On January 10, 2024, the company released drill results from the Honeypot Zone on its Queensway project. According to New Found Gold, the drilling produced excellent results, including 101.72 g/t gold across 1.80m.  

Bob Moriarty covered New Found Gold on September 11, 2023, and called it "the best story in the last 20 years." Moriarty highlighted the company's drilling on the Appleton Fault Zone, which still contains unexplored mineralization, and called it a "100% grassroots discovery" that has earned recognition through its excellent discoveries.

According to the company's investor presentation, there are a number of catalysts, including a 3D seismic survey that the company is currently conducting. The company reports that it will begin testing drill targets after the seismic survey is completed.

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3.92% of the company. According to Reuters, Chairman and CEO Collin Kettell owns 2.76% of the company with 5.16 million shares, and President Denis Laviolette owns 1.16% of the company with 2.18 million shares.

As for strategic investors, Eric Sprott owns 1.02% of the company with 1.90 million shares.

Reuters reports that institutional investors own approximately 46.41% of the company, as Palisades Goldcorp, Ltd. owns 25.03% of the company with 46.77 million shares, Sprott Mining Inc. owns 13.00% of the company with 24.30 million shares, 2176423 Ontario, Ltd., owns 5.56% of the company with 10.39 million shares, Van Eck Associates Corporation owns 2.39% of the company with 4.46 million shares, VanEck Asset Management B.V. owns 0.21% of the company with 0.40 million shares, Integrated Advisors Network L.L.C. owns 0.15% of the company with 0.29 million shares, and Citadel Advisors L.L.C. owns 0.07% of the company with 0.13 million shares.

There are 186.87 million shares outstanding with 96.07 million free float traded shares, while the company has a market cap of CA$578.89 million and trades in the 52-week period between CA$4.09 and CA$7.60.

Bob Moriarty founded 321gold.com with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

 

 

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