MFGCF - Mayfair Gold: Digging Into The Valuation After The Drop

• Mayfair Gold was one of the worst-performing gold juniors in Q2, down 33% vs. a 3% gain for the Gold Juniors Index.
• This sharp decline was likely tied to poor sentiment for gold explorers, and the stock's valuation, which was quite expensive at the stock's IPO debut at US$1.70.
• While Mayfair states are sitting on a significant resource in a Tier-1 jurisdiction, low-grade open-pit projects are a dime a dozen, which might explain the stock's cheap valuation per ounce.
• At current prices, there's no question that Mayfair is valued reasonably, but with the market unwilling to consistently value these projects above $40.00/oz, I would expect the stock to be a market performer at best.

For further details see: