Blackwolf Copper and Gold (BWCG.V), the recently created Frank Giustra vehicle, has experienced a significant correction, despite advancing all the initiatives it has promised. We believe that accumulating shares around the current price of 23 - 25 cents, provides huge upside in a bull market.
Blackwolf Copper and Gold Remains Undervalued
On June 1, 2023, we wrote that Blackwolf Copper and Gold (BWCG.V) presented a favorable risk/reward scenario in a gold bull market. We suggested that Blackwolf benefited from a “dream team” - including mining magnate and kingmaker Frank Giustra, and esteemed geologist Rob McLeod. We highlighted that Blackwolf was consolidating prospective ground in Northwest British Columbia / Southeastern Alaska and its valuation supported by a defined resource at Niblack (840,000 Au equivalent ounces at a grade of 4.32 g/t in all categories). We thought the company was unusually cheap after hitting a high of 49 cents.
While the stock is now trading down to around 23 cents for a market capitalization of approximately CAD 30 million on a fully diluted basis, Blackwolf has advanced all the initiatives it promised.
Frank Giustra and the Blackwolf Team are running fast
So far Blackwolf has delivered on its promises in a very short time.
It expected to strengthen its management team: In June, Blackwolf hired experienced young CEO Morgan Lekstrom, liberating Rob McLeod from administrative burdens so that he could focus his talents on exploring for a large deposit.
Blackwolf said it would make an acquisition: In July, it purchased Optimum Ventures and added renowned venture capital Andy Bowering (of Optimum) to its Board of Directors.
As promised, at the end of July, it also started drilling its Cantoo Project in Alaska’s Golden Triangle. While drill results are pending, Blackwolf already announced that it encountered porphyry style mineralization.
Bottom line: still an attractive entry point!
In short, Blackwolf has delivered on its commitments, but the market capitalization (as shown in the market capitalization chart courtesy of Koyfin below) is around the same level as when we first discussed the company.
Blackwolf still presents a very attractive entry point, with massive upside potential. If it encounters significant drilling success, we expect the valuation to change drastically.
Disclaimer: SGL does not provide investment advice and is not a registered investment advisor. Always do your own due diligence before making an investment. Investing in securities, especially junior miners, can be risky and never invest money you cannot afford to lose. SGL cannot guarantee the accuracy of the information in this post. SGL has attempted to present the information fairly, but it or its contributors may own shares of Blackwolf Copper and Gold so bias cannot be excluded. It has no relationship with Blackwolf Copper and Gold. SGL or its contributors may buy or sell shares at any time.
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