— Crestview Exploration (Canada Stock Exchange) is engaged in the business of mineral exploration and the acquisition of mineral property assets in North America. The crown jewel of the company is its Rock Creek Project in Nevada.
The success of the company, as one would imagine, depends on the ability of Crestview to find gold mines, and it's imperative to operate in a location that improves the odds of the company finding gold mines. The Rock Creek Project is situated in an area that is considered as one of the best locations in the world to find large and high-grade gold mines, which is favorable for the prospects of the company. The project is carried out in two phases, and the primary focus in the first phase is data compiling and base map configuration.
The company has analyzed 64 rock samples from its property in the last few years and its sampling has yielded two gold values over 0.5 g/t.
The most recent analysis now brings the total potential value of Crestview's gold reserves to $4 billion. The mine is located within a few kilometers from Barrick Gold's largest mine in the area.
Insiders are betting on the company to be successful
Insider transactions are often used as an indicator of what to expect from a company in the coming years. This is especially true for lesser-known companies that are yet to receive the attention of Wall Street analysts. This is true for Crestview Exploration.
The share price of the company, as we can see from the below chart, has fallen off a cliff in the last 3 months. However, during this period, insiders have bought 510,000 shares and no insider sales were reported. This is a very encouraging sign. If investors are buying, investors should consider buying too.
According to data from Royce Invest, small-cap companies have delivered better returns in comparison to their large-cap peers over the last few decades. The underlying thesis is simple. Small companies are in a better position because of their size to grow revenue and earnings at attractive rates in the early phase of their business operations. Crestview Exploration has zero debt on its balance sheet and the company is benefiting from the attractive macro-economic conditions. If the company successfully completes the second phase of its Rock Creek Project, an investment in the shares of Crestview could provide stellar returns to investors in the coming years. Crestview Exploration could easily reach $3 per share before the end of 2020 and investors should consider coming in as soon as possible before they miss out.
Release ID: 88959154