Two Gold Stocks Ready to Play Catch-up

By Murray Dawes, Saturday, 30 March 2024

As gold keeps moving higher lagging gold stocks look cheap.

In today’s Fat Tail Daily, Gold has broken out to new all-time highs, but the market remains sceptical of the rally. Many gold stocks aren’t moving higher with gold and are starting to look pretty cheap. Murray shows you two stocks that are ready to play catch-up.

The market remains sceptical of the rally in gold.

As the gold price heads into record territory, many gold stocks have lagged behind.

A few have been running pretty hard, with Australian based Ramelius Resources [ASX:RMS], Westgold Resources [ASX:WGX], and Spartan Resources [ASX:SPR] up between 200–500% over the last year and a half.

In the interests of full disclosure, some stocks mentioned in this article and in the Closing Bell video are either owned by me personally or are in the portfolios of my trading services.

But the buying hasn’t been widespread and as gold heads higher some of the stocks that have been left behind are starting to look like great value.

Stocks with African exposure trade at a discount due to the higher risks involved, but the discount is getting to a point where the risk looks well worth taking.

West African Resources [ASX:WAF] is up 81% in the last five months despite the fact there is some pretty serious trouble occurring in Burkino Faso.

Perseus Mining [ASX:PRU] is also starting to run after treading water for the past year. It was trading on an EV/FCF (Enterprise value to free cash flow) of under 3x 2025 numbers recently, so no wonder investors are starting to snap it up.

In today’s Closing Bell video, I look at two gold stocks that have been lagging behind the action, and ask whether they are about to move higher with the rest of the sector.

Regards,

Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.