Hi Thomas,
I recently answered a question on ARTG from one of our members - here is what i had to say:
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Artemis Gold is one of the premier gold development companies. Its flagship property Blackwater in BC has the potential to be a world class asset which will gather considerable interest from mid-to-senior producers.
It is also backed by a strong management team - the same team that brought Atlantic Gold to production and subsequently sold the company post-production. Also of note, management owns 42% of the company. It would not surprise me if they used the same template for ARTG. Get it to production, then sell the company.
Blackwater has 8M ounces in reserves and is a low cost mine with expectations for AISCs of US$616/oz. It also appears to be trading at reasonable valuations 0.32x net present value (NPV) of 2.214B. According to a research report by BMO - the peer average is 0.59x NPV.
Overall, seems like a very interesting junior gold stock. As always however, be prepared for significant volatility with a stock such as this. Especially considering it has already jumped by ~350% this year.
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Since this answer (from about a month ago), the company's share price has dropped slightly and it is now down by ~30% from its high - hence my volatility comment. As a small cap development company, it will be more susceptible to the swings in the price of gold. At this point, it is all about how it executes and what kind of progress it makes for Blackwater. Some key things to look for in 2021 include a defined feasibility study (DFS) and how it makes out with permitting. Assuming it remain on track to hit its timelines and doesn't suffer any meaningful setbacks, the company's share price can jump in a pretty significant way.
The company isn't expected to begin production until the second quarter of 2022, so we are still a ways away from it being a producer. It also means we are also still always from any potential take out by a senior producer based on this management team's track record. I am also a little weary that the PFS (preliminary feasibility study) pegs the project NPV based on a $1,514 per oz as a base case. I know many producers are still using $1,100 to $1,200 an ounce to make decisions. ARTG's low estimate is $1,300 which does seem a little high.
Using the lower NPV, ARTG is trading at 0.43 times NPV which is still below the peer average according to BMO. Of note, it appears NPV changes by just over 2% for every 1% change in the price of gold below its base case. At $1,200 an ounce, that would mean an NVP of around $1.2B which means it would be trading around 0.54 which is likely inline with peers. I say this without knowing exactly how BMO has calculated NPV of its peers and if it used a consistent gold price across all miners.
Overall -I do like what i see and it is backed by a strong management team.
Mat