Liberty Gold Business Quality Report (LGDTF)
Liberty Gold is a gold mining development company. This Liberty Gold Business Quality Report explains the Speculation Quality ranking that Liberty Gold received under my quality ranking system.
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Basic Company Information
Company Name: Liberty Gold
Quality Ranking: Speculation (1)
Primary Reason: Unprofitable
Last Updated: 11/10/2018
Liberty Gold is currently cash flow negative as its mines are in development.
This is an asset play, not an earnings-based investment.
Gold mining is a capital intensive and commodity business.
Liberty Gold Business Quality Description
Liberty Gold is in the business of exploring for and developing gold future gold mines. Their primary focus is on development stage gold mines. Liberty gold aims to add value by purchasing potential gold mines and derisking them through drilling studies. This type of operation allows Liberty Gold’s management to function quite similar to value investors. They seek bargains and hold them until those bargains can be realized in the marketplace.