Bob Moriarty, founder of 321gold.com, recently spoke with Streetwise Reports about promising mining companies, one which he believes has the potential to be the most significant gold discovery in decades. (More details below.)
Moriarty has over 16 years of experience in precious metals and mining stocks. His insights provide valuable perspective for investors looking to capitalize on new discoveries and undervalued assets.
Gold and Silver Still Offer Value
Regarding the silver market, Moriarty reflected on the dramatic crash in 2020. Although blamed on COVID-19, he believes the decline began earlier in 2019. Moriarty recalled respected analyst Bob Hoye of Charts and Market's prediction that the silver-to-gold ratio could hit 115 to 1. At the time, Moriarty was skeptical, but silver ultimately plunged below US$12/oz in March 2020. The ratio exceeded 130 to 1 briefly.
Moriarty cautioned that if another crash occurs, it may be the last great silver buying opportunity. Hoye predicts the ratio could fall again soon, perhaps from now through October.
Despite rising prices, Moriarty insists gold and silver remain reasonably valued compared to housing, stamps, and cars over the past 40-50 years. If fiat currencies stumble, Moriarty expects strong demand for real assets like precious metals. "There is nothing more real than gold and silver," he stated.
Streetwise Ownership Overview*
Dolly Varden Silver Corp - High-Grade Potential
Moriarty highlightedas an attractive silver investment. Their Kitsault Valley project in British Columbia contains advanced high-grade silver and gold deposits.
Additional discoveries are likely along favorable structures. Major institutional investors own 50% of Dolly Varden. Moriarty has been an active shareholder for years and praises recent progress. With silver prices lagging gold, he believes Dolly Varden offers speculation on an eventual catch-up.
Institutional investors have 50% of Dolly Varden's stock.
Fury Gold Mines Ltd. (FURY-T) owns 23.37% of the company with 59.5 million shares, Hecla Mining Co. (HL:NYSE) owns 10.62% with 27.04 million shares, 2176423 Ontario Ltd. owns 10.07% with 25.63 million shares, Fidelity Management & Research Company LLC owns 6.68% with 17.00 million shares, and ETF Managers Group LLC owns 2.83% with 7.20 million shares.
Sprott Asset Management LP owns 2.13% with 5.44 million shares, U.S. Global Investors Inc. owns 1.28% with 3.25 million shares, Mirae Asset Global Investments owns 1.16% with 2.96 million shares, DWS Investment GmbH owns 0.29% with 0.75 million shares, and Charteris Treasury Portfolio Management owns 0.2% with 0.5 million shares.
According to Market Watch, Dolly Varden has a market cap of CA$191.01 million, with 254.68 million shares outstanding. It trades in the 52-week range between CA$0.36 and CA$1.24.
Eloro Resources Ltd - Giant Bolivian Silver Discovery
Another company Moriarty recommends is Eloro Resources Ltd. (ELO:TSX.V; ELRRF:OTCBB), which recently announced an initial resource estimate on its Iska Iska project in Bolivia. Although the market reacted negatively to the delayed results, Moriarty sees enormous long-term potential.
Streetwise Ownership Overview*
Iska Iska likely hosts a multi-billion ounce silver deposit related to a large mineralized system. Eloro must now attract further investment to properly explore and develop this world-class asset.
According to Reuters, 17.85% of the company is held by management and insiders.
CEO Thomas Larsen has 9.14%, with 7.03 million. Independent Director Francis Sauve has 2.34%, with 1.80 million. VP and Secretary-Treasurer Jorge Estepa has 1.95%, with 1.50 million, and CFO Miles Nagamatsu has 1.73%, with 1.33 million.
Institutional investors hold 17.95%. Crescat Capital LLC has the most in this category at 15.59%, with 11.98 million shares, and Jupiter Asset Management Ltd. has 2.36%, with 1.81 million.
The rest is with retail investors. New Found Gold Corp.'s (NFG:TSX.V; NFGC:NYSE.American).
Market Watch notes Eloro has a market cap of CA$157.39 million and 76.77 million shares outstanding. It trades in the 52-week range between CA$1.97 and CA$4.29.
New Found Gold Corp - Potentially the Best Discovery in Decades
But Moriarty reserved his greatest excitement for New Found Gold Corp.'s (NFG:TSX.V; NFGC:NYSE.American).
Streetwise Ownership Overview*
Their wholly-owned Queensway project near Gander, Newfoundland, has yielded multiple high-grade gold discoveries along the Appleton Fault Zone.
Moriarty called New Found's first drill hole a "homerun" and applauded the young management team's exceptional exploration success.
With continued positive results over a 4.1 km corridor, he believes Queensway could become the most significant new gold discovery in 20 or even 50 years.
For investors seeking maximum upside potential, Moriarty sees New Found Gold as one of the safest and most promising gold mining stocks available.
Their field-based exploration expertise in a top Canadian mining jurisdiction makes additional spectacular discoveries likely.
According to Reuters, management and insiders own 5.25% of the company.
Founder, CEO, and Chairman Collin Kettell has 2.90%, with 5.16 million shares, and President Denis Laviolette has 1.22%, with 2.18 million.
39.97% is with strategic investors.
Palisades Goldcorp Ltd. has 26.30%, with 46.77 million shares. Sprott Mining Inc. has 13.67%, with 24.30 million, and 2176423 Ontario Ltd. has 4.98%, with 8.86 million.
Institutional investors hold 3.53%.
Van Eck Associates Corp. has 2.71%, with 4.81 million shares, and Integrated Advisors Network LLC has 0.38%, with 0.68 million.
The rest is with retail investors.
New Found Gold has a market cap of CA$1.07 billion, according to Market Watch, and 178.25 million shares outstanding.
It trades in the 52-week range between CA$4.03 and CA$7.60.
- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp.
- Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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