The second biggest gold mine in Europe could be about to make investors rich.
It's a story that began over 2,000 years ago when the Romans dug up $16.8 billion in gold in Romania... Using only hammers and buckets.
But now, a little company with a big dream is coming to unearth the rest.
Using modern technology, they're hoping to capitalize on an estimated $13.3 billion find.
Smart investors are watching this once in a lifetime discovery like hawks.
GMP research says this little company could realize $550 per ounce profit...
And the mine is so exciting, Barrick Gold invested $20 million to develop it.
The company's stock, according to Cantor Fitzgerald, "is inexpensive by any and all metrics."
It's a steal because few people -- yet -- have heard the extraordinary story of Euro Sun Mining Inc. (TSX: ESM, OTCPK:CPNFF).
Based at their mine in Rovina, Romania, Euro Sun has 400 million tons of ore, with billions of dollars' worth of gold and copper locked inside.
Cantor Fitz thinks they are undervalued by 500% and GMP Research predicts a 671% gain.
With such a huge discovery ready for the taking, this could be the gold story of 2019.
Plus, any small move on the gold market could turbo-charge the company's growth… from 5x to 10x to even 30x its current market cap.
Here are five reasons investors should not miss out on the biggest gold story of 2019:
#1 Re-Discovered $13 Billion Romanian Treasure
Euro Sun has secured an asset of colossal value: a Romanian gold mine that was first proven to contain a massive payday one hundred years ago.
The Ancient Romans excavated $16.8 billion in gold from this area of Romania, minting coins that were dispersed across an empire 11 million square miles in size.
Modern research indicates that Europe still has billions in gold tucked away, with hundreds of mines sitting around just waiting for re-activation.
The problem? Permits are labor-intensive and sometimes impossible, thanks to EU regulation.
Back when permits were available, Barrick Gold (NYSE:ABX), the world's most valuable gold miner, got in on the action: the company pumped in $20 million to develop Rovina.
Now Rovina is owned by Euro Sun… and Euro Sun has done the impossible... it just got the green light from the Romanian government.
The Rovina mine has been classified as a "highly scalable" asset, with an unprecedented growth potential, according to Cantor Fitzgerald.
Mines like Rovina are hard to come by, even though the area is rich in ore.
And Euro Sun (TSX: ESM, OTCPK:CPNFF) has flown over the biggest hurdle – acquiring the licenses it needs to start developing Rovina's full potential.
The mining license from the Romanian government was approved in November 2018 – the first license to have been given out in over 15 years.
A resource statement from 2012 offers a view of the potential riches: 400 million tons of ore in three bodies, roughly 7.1 million ounces of gold and a billion and a half pounds of copper, or 10.1 million ounces of gold equivalent.
In February 2019, Euro Sun completed its Preliminary Economic Assessment (PEA) for Rovina. The mine looks ready to produce an average gold equivalent of 139,000 ounces and 1.6 million over twelve years.
All told, the company is looking at $9.3 billion in gold and $4 billion in copper… a total haul of $13.3 billion.
Better yet, the mine is perfectly situated near a Romanian mining town, with a population of 13,000. Road and rail transportation is close at hand, ready to carry the mine's product to market.
Based on the company's current market cap, the upside potential here is insane.
And even just a tiny move in gold will send it even higher.
#2 Small Climbs In Gold Mean Massive Gains For Gold Miners
NOW is the time to buy gold.
Analysts are optimistic that prices are set to climb even higher, potentially exceeding $2,000/ounce, due to wavering markets and shaky geopolitical conditions.
Right now, gold stocks are trading for pennies on the dollar, as they have been since January.
But one thing that investors and speculators often forget, is how explosive gold-stock upside is when gold moves higher.
And, when gold goes up, gold companies tend to do very, very well.
Every 1% move in gold can send a small miner up 10% or more... And a 10% move can send a small miner up 100% or more.
Back in 2016, gold prices jumped 26% in 6 months… and gold miner returns were stellar:
Mid cap miners such as Endeavour Mining Corp gained 196% in 6 months, while its Ontario based competitor IAMGold gained 256% in that same timeframe.
…but some of the real winners were the shareholders of small cap miners.
Argonault Gold's share price jumped 298% in 6 months, and its peer Great Panther Mining saw its share price even jump by a whopping 340% in no more than 4 months after it reported a 19% in gold production.
Companies like Euro Sun (TSE: ESM, OTCPK:CPNFF) could start selling at a premium…for investors who don't snatch them up now.
And when gold goes up, little companies like Euro Sun often fly.
But that's not the end of this story. There's a bigger -- nearby -- catalyst.
#3 China Recently Spent $1.4 Billion On A Small Mine Just Down The Street
With this incredible find, it's no wonder that some analysts are starting to speculate about Euro Sun…
Could the company be snatched up soon, delivering a huge windfall to early investors?
It's certainly a possibility.
Analysts in the mining sector are already speculating about whether Euro Sun could be acquired.
And we think China could be a potential candidate because it just spent $1.4 billion to acquire a mine right down the street from Euro Sun.
China is making a big global investment push, as part of its $900 billion "Belt and Silk Road" initiative.
Chinese investment along the road is surging, covering 68 countries.
China wants to acquire assets along the Silk Road route—gold, silver, copper, you name it—and that route runs right through Romania.
And the Chinese paid $1.4 billion to acquire another mining asset…which sits right down the street from Euro Sun...
China's nearby acquisition could also take years to fully license.
And Euro Sun (TSX: ESM, OTCPK:CPNFF), on a site with ZERO ancient ruins is even better positioned for a multi-billion dollar payday.
The Rovina mine is fully licensed. It's poised to become one of the biggest gold and copper mine in Europe.
It's right next to a major Romanian mining town of Brad, which has already excavated $17 billion in gold in the last 100 years.
In fact, Brad's coat of arms prominently features a mining cart. There's ample access to talent, transportation and infrastructure... as well as a nearby sea port.
Soon, this story will hit the shores of America.
#4 "Undervalued by 500%" -- Cantor Fitzgerald "671% Gain" -- GMP Research
In 2016, GMP declared Euro Sun the "new old kid on the block," declaring the company had 10 MILLION OUNCES in gold equivalent waiting to be dug up.
And the numbers look even better now than they did two years ago.
At current prices, Euro Sun could realize $550 in profit per ounce… resulting in total revenue of $5.5 billion from Rovina alone.
It's no wonder that GMP noted Rovina has "robust economics and upside…If another ounce is never found, Euro Sun already owns a potentially extremely robust project."
GMP's estimate is similar to that of Cantor Fitzgerald, which completed its own estimate in early 2019.
The deposit at Rovina "carries strong economics on a standalone basis." The only thing holding Euro Sun back is the fact this is happening in a small company... far away from the lights of Wall Street.
But as we already explained, that could change in a flash…once this story gets out.
The management at Euro Sun (TSX: ESM, OTCPK:CPNFF) knows what it's doing. The company is led by CEO and President G. Scott Moore, a business executive with twenty-five years' experience in the resource sector, and the former EVP of Sulliden Gold and Director of Avion Gold.
Moore and his team have cultivated excellent political conditions in Romania, evidenced by their successful acquisition of a license for the Rovina mine.
And now all they need is the capital to take Rovina to the next level…and turn it into one of the largest gold mines in Europe.
Cantor Fitz thinks they are undervalued by 500% and GMP Research predicts a 671% gain.
#5 Europe's Second Biggest Gold Mine Could Be Worth 30x More
And it could go much higher...
When gold moves a little, miners like Euro Sun can move A LOT.
And the company has already gotten positive attention.
Barrick, the world's largest gold miner, once invested $20 million into the Rovina mine. The asset has been developed and has fallen into Euro Sun's lap. Now all it needs to do is exploit it.
GMP puts Euro Sun's short-term target at $2.10. That's a 500% increase from its current price.
And Cantor Fitz goes even further: they reckon Euro Sun is worth $2.70, an increase of 671%.
This is a company with a phenomenal upside.
It's got a fully-licensed gold mine in Romania, the only one of its kind, that could be the biggest gold mine in Europe… an asset potentially worth $10.1 billion.
And that's only if prices stay where they are! If gold edges above $1400/ounce, profits from Rovina could be even higher.
If China comes calling, Euro Sun (TSX: ESM, OTCPK:CPNFF) stock could be worth 5x or 6x what it is now...
As it becomes the #1 gold mine in Europe.
And if its billions in profits are one day realized, that 5x could turn into 30x… A company to rival Barrick in size and value.
But the time to fully investigate Euro Sun (TSX: ESM, OTCPK:CPNFF) is now...
Other miners looking to capitalize on a new mining boom:
Kinross Gold Corporation (NYSE:KGC, TSX:K)
Kinross Gold Corporation is relatively new on the scene, founded in the early 90s, but it certainly isn't lacking drive or experience. In 2015, the company received the highest ranking for of any Canadian miner in Maclean's magazine's annual assessment of socially responsible companies.
While Kinross posted a significant loss in the fourth quarter of 2018, the company is making strong moves to turn around its earnings, including the hiring of a new CFO, Andrea S. Freeborough.
"Andrea's successful track record at Kinross and throughout her career, including accounting, international finance, M&A, and deep management experience, will be an excellent addition to our leadership team," said Mr. Rollinson. "We have great talent at Kinross and succession planning is a key aspect of retaining that talent for the future success of our Company."
Agnico Eagle Mines Ltd (NYSE:AEM, TSX:AEM)
Canadian based gold producer, Agnico Eagle Mines is an especially noteworthy company for investors. Why? Between 1991-2010, the company paid out dividends every year. With operations in Quebec, Mexico, and Finland, the company also is taking place in exploration activities in Europe, Latin America, and the United States.
Agnico is a company with a lot of exposure to gold, letting investors take advantage of long-term price movements.
Though the company joins a long list of gold majors that reported losses in 2018, but its cash flow deficit is largely attributed to its growth in production and new projects coming online.
Yamana Gold (NYSE:AUY, TSX:YRI)
Yamana, has recently completed its Cerro Moro project in Argentina, giving its investors something major to look out for. The company plans to ramp up its gold production by 20% through 2019 and its silver production by a whopping 200%. Investors can expect a serious increase in free cash flow if precious metal prices remain stable.
Recently, Yamana signed an agreement with Glencore and Goldcorp to develop and operate another Argentinian project, the Agua Rica. Initial analysis suggests the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes (520 million pounds) of copper-equivalent metal, including the contributions of gold, molybdenum, and silver, for the first 10 years of operation.
The agreement is a major step forward for the Agua Rica region, and all of the miners working on it.
Eldorado Gold Corp. (NYSE:EGO, TSX:ELD)
This Canadian mid-cap miner has assets in Europe and Brazil and has managed to cut cost per ounce significantly in recent years. Though its share price isn't as high as it once was, Eldorado is well positioned to make significant advancements in the near-term.
In 2018, Eldorado produced over 349,000 ounces of gold, well above its previous expectations, and is set to boost production even further in 2019. Additionally, Eldorado is planning increased cash flow and revenue growth this year.
Eldorado's President and CEO, George Burns, stated: "As a result of the team's hard work in 2018, we are well positioned to grow annual gold production to over 500,000 ounces in 2020. We expect this will allow us to generate significant free cash flow and provide us with the opportunity to consider debt retirement later this year. "
First Majestic Silver (NYSE:AG, TSX:FR)
Though First Majestic recently took a significant blow, as a strong dollar weighed on precious metals resulting in a poor quarterly earnings report, there's still a lot of bullishness surrounding the stock. Adding to the negative numbers, however, was a string of highly valuable acquisitions which are likely to turn around for the metals giant in the mid-to-long-term.
While it's primary focus remains on silver mining, it does hold a number of gold assets, as well. Additionally, silver tends to follow gold's lead when wider markets begin to look shaky. And with analysts sounding the alarms of a global economic slowdown, both metals are likely to regain popularity among investors.
Further boosting its portfolio, the company also entered a share-repurchase program, as it feels that its stock is. at the moment, undervalued, and will benefit all shareholders by increasing the value of the stock.
By. Charles Kennedy
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