PZG - Paramount Gold Nevada: An Inferior Way To Buy The Dip
- Paramount Gold Nevada is one of the worst-performing gold juniors this year, down ~40% year-to-date vs. a ~24% decline for the Gold Juniors Index.
- While the decline in the share price has left the stock more undervalued on a P/NPV basis, it's also made it more difficult to finance its GM Project.
- At a market cap of $33 million, Paramount trades at ~$9/oz, but is a very risky bet, with a market cap to capex ratio of 0.34 to 1.0 at GMP.
- With the whole sector on sale, I believe it's best to focus on the highest-quality names with minimal risk, and I see dozens of better opportunities elsewhere in the sector.
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Paramount Gold Nevada: An Inferior Way To Buy The Dip