2024-02-11 20:28:28 ET
Summary
- Osisko's Cariboo Gold Project has promising mining potential, with an opportunity for upscaling high-grade gold resources through exploration.
- The stock appears to be trading cheaply based on the NPV estimate of the Cariboo Gold Project.
- However, uncertainty about the Cariboo Gold Project's pending permits and the prevailing volatility in gold prices will limit near-term upside in the share price.
- The stock can be a promising 'long' investment if Cariboo Gold passes the permitting stage. Until then, it's a 'hold'.
Thesis
Osisko Development Corp. ( ODV ) is a Canadian junior gold developer focusing on developing its three strategic mining assets in North America: the Cariboo Gold Project in Canada, the Tintic project in the US, and the San Antonio Project in Mexico. For gold mining companies, the grade is king. Fortunately, ODV's flagship asset (the Cariboo Gold Project) has very impressive grades compared with peer Canadian gold mining companies, indicating that ODV has the potential to become a low-cost intermediate gold producer over the medium-to-long horizon....
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Osisko Development: Things To Consider Before Jumping On The Bandwagon