Significant Early Revenue Potential For Jupiter Gold
Jupiter Gold Corporation (US:JUPGF – $0.96) has 100%-ownership to mineral projects in development and exploratory stages aggregating 145,668 acres in Brazil. In particular, Jupiter Gold has eight gold projects and one quartzite quarry project. Reasons to own Jupiter Gold stock:
1. Potential for significant early revenues from its quartzite Diamantina property. A mining license has been filed and will take around six months to obtain.
Being a junior gold exploration company typically means that the company will have no revenues and be consistently in need of cash until it hopefully develops or sells the property.
This means that investors must always face the prospect of financing and dilution to their investment, as well as a risk of poor stock price performance if costs are higher than expected, or the resource find isn’t as good as hoped.
Jupiter Gold Corporation is an exception to this rule, as it recently discovered substantial quartzite deposits on its 100%-owned Diamantina Project, located in southeastern Brazil. This discovery means that Jupiter Gold may be able to achieve significant cash flow positive operations in the reasonably near-term, unlike so many of its junior gold peers which are usually many years away from any revenue.
Preliminary calculations of the quartzite indicate a potential aggregate of 3.7 million tons based on a 30-meter depth estimate for the deposit, chosen conservatively as some other known quartzite deposits in the same geological region reach 250 meters in depth. The current market price for the type and color/texture of quartzite identified in Jupiter Gold’s property ranges from $1,200 to $2,000 per ton when sold at the quarry. Since Jupiter Gold’s deposit has white and light grey quartzite which are known to be sought after, its product may command a price towards the upper portion of this range.
2. Also highly focused on gold projects in Brazil, an excellent mining jurisdiction that its team knows extremely well.
3. Its gold projects are located in important and well-known gold mining districts thus providing significant risk diversification.
4. Additionally, significant potential to measure/grow gold resources/reserves as geological studies are completed.
5. No debt, low share count, management with deep local experience.
We reiterate our buy recommendation for Jupiter Gold Corp. and increase our price target to $2.40, which is 150% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $2.40||Latest Company Report (pdf)|
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