Newrange Gold Corp.

Newrange Gold Corp. (TSXV: NRG) is an exploration stage company. It is focused on acquiring and exploring mineral properties. The company operates through projects namely Pamlico Gold Project and North Birch Gold Project.

Recently, the company informed about the recent drilling program at the Pamlico Gold Project in Nevada. As reported, a total of 2,505 meters have been drilled in 25 holes and 14 holes covered ~450 meters of strike length along the central part of Pamlico Ridge, between the Pamlico and Gold Bar Mines.

FY20 Financial Highlights: NRG announced its yearly results, for the period ended April 30, 2020, wherein the company reported a loss from continuing operations at CAD 2.498 million, as compared to CAD 2.216 million in FY19. The period was marked by higher Administration and office costs, an increase in the Exploration expenditures, net expense, higher Marketing services and shareholder information and Professional fees, which was partially offset by Unrealized gain on marketable securities, a lower share-based compensation. Further inclusion of Write-off of mineral properties amounting CAD 0.284 million was recorded during the year. Net loss and comprehensive loss for the year stood at CAD 2.360 million, as compared to CAD 2.024 million in FY19. Cash balance at the end of the period was recorder at CAD 0.519 million, while total assets were reported at CAD 3.318 million.

FY20 Income Statement Highlights (Source: Company Reports)

Risks: The company is yet to report a mineral deposit from its drilling activities, and there is uncertainty regarding the income of the company.

Stock Recommendation: The Stock of NGR corrected ~32% in the last three months, underperforming the index by ~33%. The business is in the exploration stage and is focusing on drilling activities. In October 2019, the company reported positive results from the sampling at the Pamlico project, which states continuous gold and silver mineralization between the 5570 and 5518 levels of the Good Hope Mine. Further, during November 2019, the company had confirmed that it identified a zone of high-grade mineralization averaging 12.88 g/t Au and 27.06 g/t Ag. On February 2020, the company announced that it has completed and interpreted Induced Polarization (IP) survey at the Company’s Pamlico Project in the Walker Lane Trend of western Nevada had successfully generated several targets worthy of drill testing, which are key positives. However, the company is yet to report a concrete mineral deposit from its drilling activities, and due to lack of any income drivers, we prefer to remain on the sidelines. NRG Shares have formed a steep bearish price pattern on the daily price chart and traded below its all support levels on the daily price chart. Further, the moving average convergence divergence (MACD) is falling, with the difference between 12-day and 26-day EMA is substantially negative a bearish price trend. Hence, considering the aforesaid facts, we recommend to ‘Avoid’ the stock at the closing market price of CAD 0.13 on September 23, 2020.

NGR Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

White Gold Corp.

White Gold Corp. (TSXV: WGO) is a mining exploration company which owns a portfolio of 21,207 quartz claims across 33 properties covering over 420,000 hectares representing over 40% of the Yukon’s prolific White Gold District. The Group’s operates through its flagship White Gold property and is operating with the Golden Saddle and Arc deposits.

Recently, the company informed that it had commenced its diamond drilling program on the Ryan’s Surprise which is located ~2 km west of the Company’s flagship Golden Saddle deposit and 11 km south of the Company’s VG deposit. 

Q2FY20 Financial Highlights: WGO announced its quarterly results, wherein the company posted a higher loss before income tax at CAD 1.562 million, as compared to CAD 1.359 million in the previous corresponding period (pcp). The company witnessed an increase in contingent liability accretion expense, marketing, office and administration expense, higher Conferences and events, significantly higher Consulting fees and an increase in advance royalty accretion expense, which was partially offset by a lower salary and wages, a decline in stock based compensation and a steep decline in travel expenses. Net loss and comprehensive loss for the period widened to CAD 1.55 million, from CAD 0.64 million in pcp. The company ended the quarter with cash & cash equivalents of CAD 8.592 million, while total assets stood at CAD 118.428 million.

Q2FY20 Financial Highlights (Source: Company Reports)

Risks: The group is yet to generate revenue and is concentrating on the drilling activities while the expenses are funded through the equity capital, which has resulted in an increase in the accumulate deficit. Any negative outcome of the drilling activities would dampen the prospect of the company.

Stock Recommendation: The stock of WGO corrected ~18% so far this year. Recently, the company started a diamond drilling program on the Ryan’s Surprise location and found promising drilling results, which is a key positive and might lead to potential diamond deposits. The Management cited that the business did not face any operational hindrance and has executed as planned. The company’s exploration activities continued to operate at normal levels. However, the company reported an increase in the net loss, which has resulted in a higher deficit for the company. The stock has breached all its support levels, which implies a strong bearish price trend. WGO shares traded well below the short-term as well as long-term support levels of 5-day, 10-day, 20-day, 30-day, 50-day, 100-day SMAs. In the last trading session, the stock breached its long-term support of 200-day SMA; however, managed to close just above it. Hence, considering the aforesaid facts, we recommend the investors to ‘Avoid’ the stock at the closing market price of CAD 0.93 on September 23, 2020.

WGO Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

Disclaimer

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