We highlighted one company that should be bought before it begins producing as it may be rerated by the market shortly as it begins to generate positive cash flow. This company operates in Nevada which is one of the top places to mine precious metals from a permitting and cost basis. The company is on the verge of production and generating cash flow which will attract attention from large institutions. It should be noted that some noteworthy funds hold and just acquired large positions this mining company such as Gabelli Funds and U.S. Global Investors as they anticipate revenues starting by the end of this month. The company has recently broken out of a 18+ month consolidation on record volume from increased interest from institutions. We expect this trend continues as it produces cash flow and earnings. It has recently made a 10 week bullish consolidation handle which is now finding support at the rising 50 day moving average. The company may be ready to make its next move to challenge all time highs and break through $3.20. The 200 day and 50 day moving average is positive and the chart appears to be extremely bullish.
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Why Cash Flow Is Crucial To Gold and Silver Mining Investors
