Globe says Newlox seen as a microcap worth considering
2021-02-03 08:57 ET – In the News
The Globe and Mail reports in its Wednesday edition that small-company stocks are back in the spotlight again, helped by tailwinds in multiple sectors at the same time. The Globe’s Shirley Won writes that microcap stocks offer potential for big gains, but keep in mind that they come with higher risk. Selective Asset Management president Robert McWhirter recommends buying Newlox Gold Ventures (30 cents). Mr. McWhirter says Newlox recovers gold from tailings left by artisanal miners in Latin America. These miners’ method only captures about 40 per cent of gold in the ground, while 60 per cent is thrown into a pile that contains silver, too, notes Mr. McWhirter. Newlox’s initial venture is in Costa Rica, which has suffered environmental damage from mercury use in gold recovery by artisanal miners. In the second quarter, Newlox plans to ramp up gold production from tailings at its first plant and commission a second plant to crush ore to be brought there by miners. A risk is that these miners may not want to participate, but these projects have government support because of environmental concerns. Newlox plans to announce a third plant soon in another country. Mr. McWhirter paid 22 cents a share for Newlox stock.
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