NHVCF - Northern Vertex: Valuation Remains Attractive Even After The Surprise Merger
- Northern Vertex released its preliminary fiscal Q2 results last week, and reported quarterly production of 12,400~ gold-equivalent ounces, up more than 50% year-over-year.
- This translated to a second quarter in a row of more than $20 million in revenue, with trailing-twelve-month revenue now sitting above $80 million for this junior producer.
- The biggest news in the quarter was a proposed merger with Eclipse Gold, a Nevada-based explorer on the northern portion of the Walker Lane Gold Trend.
- While I'm neutral on the recent deal, I still see Northern Vertex as very reasonably valued at 1.4x FY2021 sales, so I see the stock as a Speculative Buy at US$0.36.
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Northern Vertex: Valuation Remains Attractive Even After The Surprise Merger