Why Experts Like This South Dakota Stock

Source: Streetwise Reports 04/16/2024

Dakota Gold Corp. is making waves with its promising projects in South Dakota’s historic Homestake District. Read on to see why some experts like this gold stock.

Dakota Gold Corp. (DC:NYSE American) is a U.S.-based gold mining company that’s catching the attention of analysts and investors alike. The company’s shares are poised for a breakout, according to Technical Analyst Clive Maund, who rated it an Immediate Strong Buy in his April 4 report. Dakota Gold is actively exploring its extensive land package in South Dakota’s historically rich Homestake District, seeking new mineral discoveries.

Investors in Dakota Gold have weathered a bear market over the past two years, but Maund believes this is about to change rapidly. He noted that the company’s share price movement has formed a cup base pattern over the past six months and appears to be reversing out of its downtrend. Before breaking out, the stock may pause to form a handle to complement the cup.

Two key factors contribute to Dakota Gold’s promising outlook. Firstly, gold has entered a major bull market, which bodes well for gold equities. Secondly, the company recently announced positive drill results, revealing high-grade gold in another zone at its flagship Maitland project.

As reported by analyst Peter Bell from Canaccord Genuity in an April 4 research report, standout results from the JB zone include 25.03 grams per ton (g/t) gold over 4.4 meters (m) and 9.36 g/t gold over 2.6m.

Bell emphasized that these strong intercepts at Maitland highlight the potential for a substantial Homestake-style deposit, adding excitement and optionality to the company’s Richmond Hill deposit, located 2.3 miles west of Maitland. Dakota Gold has been actively drilling at Richmond Hill since early 2022. The combination of these projects gives investors exposure to an advancing development project with high-grade exploration potential.

Chris Temple, editor/publisher of The National Investor, also recommended Dakota Gold as a growth-oriented stock to buy. He highlighted the upcoming Richmond Hills resource estimate, the deposit’s open nature, and the exploration upside across the company’s properties. Temple anticipated more exciting news from the old Homestake workings, hinting at a brand new aspect to the story.

Dakota Gold’s leadership team is another strong point, according to an interview with John Newell of Golden Sky Minerals, with seasoned mining entrepreneurs at the helm. Co-chairman Robert Quartermain, a Canadian Mining Hall of Fame inductee, brings over 40 years of industry experience. President, CEO, and Director Jonathan Awde, co-founder and former CEO of Gold Standard Ventures, is skilled in corporate development, asset acquisition, joint ventures, and capital procurement. The company’s technical team has extensive geological and exploration experience, including direct experience in the Homestake District and historic Homestake Mine.

The company’s properties, spanning over 48,000 acres, surround the historic Homestake mine, once the largest gold mine in America. Dakota Gold aims to uncover significant gold deposits by applying modern exploration techniques to this gold-rich area. In addition to Maitland and Richmond Hill, the company’s portfolio includes City Creek, Blind Gold, Tinton, Paleoplacer, West Corridor, Ragged Top, Whistler Gulch, and Poorman Anticline.

Gold Bull Market Underway

With a major gold bull market underway, analysts expect gold prices to continue climbing due to factors such as expectations of real interest rate cuts, geopolitical uncertainty, concerns about U.S. deficit spending and national debt, and increasing investments in gold by central banks.

This environment favors gold equities, particularly fundamentally sound juniors like Dakota Gold and smaller mid-tiers.

Catalysts

Near-term catalysts for Dakota Gold’s share price include ongoing drill results and the completion of a maiden mineral resource estimate on Richmond Hill, anticipated this quarter.

The resource estimate will incorporate results from 800 historical drill holes and Dakota Gold’s own drilling at the property. [OWNERSHIP_CHART-7442]

Ownership and Share Structure

According to the company, approximately 25% of its shares are with management and insiders.

Out of management, Co-Chairman Robert Quartermain holds the most shares at 8.49% or 7.45 million shares, President and CEO Jonathan Awde is next at 6.86%, with 6.01 million shares, while COO Jerry Aberle holds 4.88%, with 4.28 million. The remainder of the 25% is held by other members of management and the board of directors.

About 26% of the shares are with institutional investors, according to Yahoo Finance and Edgar filings. Top institutional holders include Fourth Sail Capital with 5.27%, Van Eck Associates with 3.97%, Blackrock Institutional Trust Co. with 3.65%, The Vanguard Group Inc. with about 3.15%, Fidelity Management and Research Co. LLC with 2.71%, and CI Investments Inc. with 2.63%.

About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 7.7%, and industry giant Barrick Gold Corp., which owns about 3%. The rest is retail.

Dakota Gold has a market cap of US$227.41 million, with 87.7 million shares outstanding. It trades in a 52-week range of US$3.95 and US$1.95.

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Important Disclosures:

1. Dakota Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dakota Gold Corp.
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( Companies Mentioned: DC:NYSE American, )