- G2 Goldfields was one of the worst-performing gold explorers in Q3, down 53% for the quarter, and more than 55% from its peak.
- This significant decline in the share price should not be surprising, as the company was trading at a valuation of over $100 million pre-resource, well above the industry average.
- Unfortunately, while the valuation has improved after the recent decline, I believe there are much better valuations out there in the sector.
- Therefore, I continue to see the stock as an Avoid, and I would view any rallies to $0.55 before year-end as selling opportunities.
For further details see:
G2 Goldfields: A Look At The Valuation After The Drop