Yesterday, the price of gold and silver both broke out as the gold price closed above $1800 an ounce. This brought a surge in buying in most big cap mining stocks and helped to generate a 16.64% rally in HL. Yep, that’s a huge gain in one day for a stock, and we were focused on it Tuesday as a mining stock that you had to keep your eye on this week for a silver move. And it all happened.
As you can see, HL smashed through this simple consolidation triangle. I think big things are coming for my top stock pick of the month, Xtra-Gold Resources Corp (OTCMKTS: XTGRF), too. They just reported earnings Thursday and a nice revenue stream.
As I pointed out in my profile of the company on Monday, Xtra-Gold Resources, which trades as XTGRF on the US OTC and XTG on the Toronto stock exchange, is a small cap gold exploration stock that does something few others do.
That is, it already makes money!
Yesterday, the company reported earnings for the first quarter of 2021, which included net income just under two million dollars. The company increased its balance sheet to $11,866,211 in US dollars – that’s cash and has zero debt.
James Longshore Founder and CEO stated that “the Company continues to demonstrate its ability to self-finance our drilling/work programs through the Community Mining Project. With this quarter net income of approximately $2 million,we have enough cash to internally finance our 2021 and 2022 work programs. We are aggressively expanding our resource, with the goal of getting the Kibi Gold Project recognized as a significant gold discovery.”
The stock had a big rally on Monday and appears to be going through a short-term consolidation just under $1.25, with $1.15 as support. What people don’t realize is that the millions in gold sales the company does makes it so that it is fully funded and does not have to go to the markets to raise money. So, unlike most small cap exploration companies there is no incoming dilution. It sets it up to be a big leader on this rally cycle, imho. For more details on the company check out my first post on it here.
-Mike
Disclosure: Mike Swanson owns shares of Xtra-Gold Resources Corp. Because Xtra-Gold Resources is a small cap stock with a market cap of less than $100 million he has put himself in a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post (05/02/2021). Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Xtra-Gold Resources. This third party paid Timingwallstreet Inc., $12,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days from the date of this post (5/02/2021). This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.
