Stock Tip Tuesday…

Mineros SA (🇨🇦 :$MSA)

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Mature mining gem 💎

A lot of the time when small cap mining stocks are brought to my attention they are ideas or the beginning of a project that has potential. These companies and stocks are all well and good and I have definitely invested in my fair share of them. However, it’s rare you find a low cap stock with a mature business that is actually in the producing stage of their mining expedition.

That’s what we have for you today with Mineros S.A ($MSA).

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The Gold situation 🪙 

If you aren’t aware of the macro situation with gold at the moment, listen up. Just a few weeks ago there was a huge dip in the market, the biggest since covid 2020 and the fear is real. Many people are throwing around the word recession and saying its only a matter of time.

That’s where gold comes in. In times of uncertainty and economic shit storms, smart investors place their money in gold. It’s a backed up unit of wealth unlike the dollar or yen. Fiat currency which can be hit by inflation especially in recessions.

Look at the billionaires and what they are doing. Jeff Bezos, Ray Dalio and even Michael Burry had liquidated most of their holdings and is betting HUGE on gold right now.

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Doing business right 📈

Finally we come to our pick Mineros S.A. Mineros S.A. operates primarily in Colombia, with additional exploration activities in Nicaragua and Chile.

The company is mature, they are producing gold right now and quite successfully. Mineros S.A.’s revenue over the last twelve months is over $600M. Majority of this is from their ability to to produce gold at a cost significantly lower than its selling price. In the latest quarter, the all-in sustaining cost per ounce was $1,429, while the selling price was an impressive $2,067 per ounce, resulting in a substantial spread of over $600 per ounce. This margin underscores the company’s operational efficiency and cost management prowess.

With a current stock price of $1.09 and a market cap of $320 million, the company is trading at the price of its assets, suggesting potential undervaluation and another reason we like the stock so much.

This increased revenue has only made the company hungrier. As we can see a rinse and repeat tactic being deployed as they search for more mines in the Colombian area. This is obviously because the success they have had there, but also because of the ease of doing business experienced in Colombia. I really like these guys and would recommend looking into them if you are interested.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

We don’t own stock in Mineros S.A. Full disclaimer here

Cheers,