SeventyFour
Just over six months ago, I wrote on Calibre Mining (OTCQX:CXBMF), noting that while the company continued to over-deliver on promises, there was no way to justify chasing the stock above US$1.18. This is because the stock had found itself over-extended heading into the worst seasonal stretch of the year, with the GDX often struggling to hold on to any gains in the June through October period. Since then, Calibre has suffered a 35% drawdown, and while it has succeeded in acquiring Marathon Gold (OTCQX:MGDPF) to diversify its portfolio (closing expected imminently), the short/medium-term outlook (0-12 months) is mixed.
Gold Bugs Index Returns by Month – Author’s Data & Chart
This is because while 2024 will be another strong year of annual production, it will be a much higher capex year with Calibre in the heart of Valentine project construction, weighing on free cash flow. Plus, we could see share overhang once the…
