Gold Standard Ventures: A Look At The Valuation After The Drop

Summary

Gold Standard has had a slow year on the exploration front with just 16,000 meters of drilling completed on the property, a fraction of what the busiest juniors are drilling.

While the company’s Pre-Feasibility Study at Railroad-Pinion displayed solid economics with industry-leading costs, the recent share dilution continues to weigh on long-term upside.

Currently, the stock is trading at an enterprise value per ounce of $65.17, a large premium to its North American peers, which are trading closer to US$50.00/oz.Based on the slight premium and likelihood of further dilution in the next 12 months, I see better opportunities elsewhere in the sector.It’s been a busy year for the Gold Juniors Index ( GDXJ ), with some juniors like De Grey Mining ( OTCPK:DGMLF ) and Freegold Ventures ( OTCPK:FGOVF ) soaring by as much as 1000% with excitement about a record gold ( GLD ) price reinvigorating interest in the sector. […]

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