GFI - Osisko Mining: Buy The Dips (Rating Upgrade)
2024-03-28 15:15:40 ET
Summary
- Osisko Mining Inc. has resisted selling pressure and outperformed other developers, holding key support and it appears to be under accumulation.
- After three years of primarily infill drilling to advance the project, the focus is shifting back to step-out drilling with a well-financed partner, suggesting an exciting few years ahead.
- In this update, we'll dig into what makes Osisko unique and and why I see it as one of the best ways to get leverage to gold with relatively low risk.
It's been a tough few months for the developer space, which has lagged the producers. This has undoubtedly weighed on sentiment industry-wide for the smaller-cap names, and it hasn't helped that the world's largest gold producer has found itself hovering near multi-year lows. However, it's in these periods of extreme pessimism that the babies are thrown out with the bathwater, and while many developers have sunk to multi-year lows, a few have names have resisted some of the selling pressure and outperformed on a relative basis, with one name being Osisko Mining Inc. ( OBNNF ).
Obviously, sitting near multi-year lows is still not much help to investors, but the fact that Osisko continues to hold key support is an improvement, suggesting the stock appears to be under accumulation. This is helped by its strong balance sheet , and it not having to go raise capital in an unfavorable environment vs. many other desperate and lower-cap peers.
In this update, we'll dig into recent developments, what makes Osisko Mining so unique, and why I see it as one of the best ways to get significant leverage to the gold price with a fraction of the risk of most of its developer peers. Let's take a closer look at the company below. ...
Osisko Mining: Buy The Dips (Rating Upgrade)