- Auteco Minerals has slid more than 40% since its August peak, and has been dethroned as one of the top-5 performing gold juniors year-to-date.
- The sharp slide in the share price is likely due to the insane valuation the company commanded of nearly A$300 million despite a mineral resource of only 1 million ounces.
- While the company's resource is very high-grade, and in a Tier-1 jurisdiction, the valuation continues to be a little expensive even at current levels.
- Therefore, I remain neutral on the stock for the time being, even if the stock does have a promising team behind it, and a high likelihood of proving up additional ounces in Red Lake.
For further details see:
Auteco Minerals: Assessing For Technical Damage After The Drop