These low valuations are happening just as Factor #2 kicks in—a surge in cash flow from higher gold prices.
It’s really important to understand how a small increase in the gold price means a HUGE jump in cash flow for producers.
These companies have been mining gold at a cost of $1,000 per ounce and selling it for $1,200 per ounce, booking $200 per ounce of profit for years.
In 2020 they are suddenly going to be mining it for $1,000 and selling it for $1,500 per ounce, which is a profit of $500 per ounce……250% higher.
Profits and cash flows aren’t just going up, they are going to double or triple for most of these stocks in 2020.
And remember, these stocks are historically cheap on earnings and cash flow numbers that came from $1,200 per ounce gold!
Combine the fact that the valuations of these stocks are historically low with a double or triple in cash flow and earnings and investors owning them are going to be enjoying a powerful double whammy to the upside.
That double whammy will create powerful upside leverage.
As that year-on-year growth gets into databases–and shows up in institutional stock screens–the level of interest in these stocks will go up exponentially.
And I found The One that institutions are just starting to discover. It’s a low cost producer in the USA, with a tight share structure and a growing dividend.
Get great gold leverage right here in the USA—
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If Gold Goes Up 20%, Cash Flows Jump 250%–And Gold Stocks Even More!
