LRTNF - Pure Gold Mining: A Look At The Valuation After The Drop
- Pure Gold Mining is down 30% from its December highs after heading into Q4 as one of the top-performing gold stocks in 2020.
- This sharp correction has led many to assume that the stock is extremely undervalued, but it's important to note that the stock was severely overvalued into the correction.
- While the valuation has undoubtedly improved at US$1.68, I still don't see the stock as cheap relative to peers in Tier-1 mining jurisdictions.
- Therefore, while it's certainly possible that the stock could bounce and head back above US$2.00, I would view any rallies near the stock's prior highs as selling opportunities.
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Pure Gold Mining: A Look At The Valuation After The Drop