LRTNF - Pure Gold Mining: Tracking Miles Behind H2 Guidance

• Pure Gold Mining released its Q3 production results last week, reporting quarterly production of ~9,300 ounces, a more than 50% increase on a sequential basis.
• However, with similar throughput expected in Q4 with a minor step up in grades, Pure Gold is on track for a major miss vs. its H2 2021 guidance mid-point.
• Normally, after a 60% decline, a stock would be deeply undervalued, but Pure Gold came into this correction significantly overvalued and has diluted shareholders the whole way down.
• At a fully diluted market cap of ~$385 million, the stock is reasonably valued, but I think there are far better ways to play the sector, especially given that there's no guarantee we won't see more share dilution next year.

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