Goldgroup Mining – This is what I call a great day

Today, Goldgroup had a fantastic run. It is up 32 percent. Since the lows in November, the stock is up 575 percent.

It looks like the word is getting out. During the past few days, the CEO of Goldgroup was at PDAC (mining convention) telling the story and people are buying it up.

Obviously a lot of people including the ones that are reading this blog missed out on Goldgroup’s big gains. The last three years have been so horrible that after seeing the stock move from $0.04 to $0.15, they did not want to buy. Now they are kicking themselves seeing the stock at $0.27. The same kind of thinking will take place now. “Oh Goldgroup is up 575 percent. I don’t want to be buying now.” The price of $0.27 is much higher than the price of $0.04, but $0.27 is nothing. Cerro Prieto alone is worth the current market cap. You are still getting 50 percent of San Jose de Gracia and most importantly 100 percent of Caballo Blanco for free. When you account for these properties, the stock price should be at $1 today and when they go into production, then we are talking about $5 per share. Yes, it will take years to get there, but that’s what investing is all about.

Disclosure: Long Goldgroup