Source: Michael Ballanger 01/09/2024
Michael Ballanger of GGM Advisory Inc. shares his thoughts on American Eagle Gold Corp.
American Eagle Gold Corp. (AE:TSXV)
I have been on the phone answering calls from some very big players in the mining business this afternoon asking my opinion of Anthony Moreau and this NAK discovery. I draw your attention to the Hercules Silver (BIG:TSXV) chart shown below.
Their recent drill holes were not better than the hole announced yesterday by American Eagle Gold Corp. (AE:TSXV).
Yet, with 227mm shares issued, BIG hit a market cap of over CA$370mm last month, during which Barrick bought 15.2% of the company.
AE is capped at a paltry CA$29.3mm for a drill hole as good as or better than BIG’s.
I have a hunch that AE is about to go “into play” and see potential for a pretty big pop if these players start to beat the drums. This is different from last year when the discovery hole moved the market before Teck wrote a cheque. This time, AE is fully-funded and undervalued relative to BIG.
I see $1.25-1.50 if the planets align properly, by May.
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Michael Ballanger Disclosures
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.
( Companies Mentioned: AE:TSXV,