Keeping tabs on dozens or hundreds of companies can be difficult for most investors. The sheer number of investment options out there is truly staggering, in Canada alone. That said, I’ve got another company for those looking to build out their watch list: Wesdome Gold Mines (TSX:WDO).
Wesdome is a lesser-known player in gold production in Canada, with most investors sticking to the largest or producers for exposure- Newmont Gold Corp. (TSX:NMT) and Barrick Gold (TSX:ABX)(NYSE:ABX).
The company has just reported positive drilling results in mid-February, stoking investor expectations that the company’s exploration portfolio may indeed yield more gold over a long period of time due to the size and grade of the results reported.
This is certainly a higher risk, higher reward option for investors seeking gold exposure, and any investment made on the basis of drilling results alone is not conducive with a long-term, sustainable investment plan, meaning Wesdome remains a speculative play right now, in my opinion.
That said, for investors considering a speculative growth company to add to their watch list, Wesdome fits the bill for a few other reasons. The miner announced it may also consider starting up an older mine which was previously shelved in Ontario, due primarily to the rising price of gold, another key driver which should take all gold stocks higher.
I expect the price of gold to continue to rise as currency depreciation, particularly in the U.S., related to increased fiscal stimulus which is inevitable due to a perception that the current economic bubble is too big and popping it would be catastrophic (and no one administration will want to have that egg on their face).
Invest wisely, my friends.
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