Newlox Gold Ventures (CSE: LUX) is a unique gold name within the Canadian small cap space. The company, based in Canada, is focused on environmental remediation which effectively has the byproduct of gold production. The result, is that it is thereby a rarity in the junior mining space – it also classifies as an ESG operation.
The Investment Thesis
Our investment thesis can be broken down into the following key points:
- The demand for environmental remediation following decades of artisanal gold production using harmful chemicals is rising from governments globally.
- The company is revenue generating at a valuation lower than multiple gold explorers.
- Through environmental remediation, the company has the byproduct of gold production, at extremely low input cost rates.
- Continued partnerships with artisanal miners in global jurisdictions provides local employment while also keeping Newlox’s operating costs low.
- The small footprint of each operating facility enables short construction times for additional facilities.
- The micro-processing model allows the company to enter numerous jurisdictions thereby diversifying its revenue streams.
Overall, the Deep Dive sees the potential for one of the largest gold rushes in decades as a result of the current macro environment. Operators such as Newlox Gold, whom are producing gold in a continuously improving gold environment, will see the economics of their projects continually improve as a result of these macro events while they remain focused on their core operation.
FULL DISCLOSURE: Newlox Gold Ventures Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Newlox Gold Ventures Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.