Pacton Gold Inc. (TSX.V:PAC.V) (OTC:PACXF) is a junior exploration company that explores gold, lithium, and uranium in the US, Australia and Canada. The stock has been up lately thanks to a couple of positive news from the company.
A few weeks back, Pacton Gold closed a $5.5-million private placement, and last week, it became the 3rd largest landholder in Australia’s Pilbara Gold Rush after it entered into a letter of intent to acquire 100% of the shares in Drummond East Pty Inc, a subsidiary of Impact Minerals Ltd.
Intention to acquire Drummond East Pty’s properties is seen as a key strategic decision as it would open further revenue streams for PAC. “Pacton continues to further consolidate the region through key property evaluations, and the addition of Drummond East increases our land holdings to 2,227 sq km,” said Interim President and CEO of Pacton – Alec Pismiris, in a press release.
Drummond holds 1,126 sq/km of prospective ground for gold in Western Australia’s Pilbara region. The properties owned by Drummond are nearby to the key exploration properties managed by Novo Resources Corp. (NVO), a comparatively bigger player in the exploration segment.
Presently, Pacton Gold has a market cap of around C$53,741,193, while Novo’s market cap is C$941,805,661. However, when it comes to investment potential, PAC appears to be a better alternative than NVO. There are many reasons for it; the most important one is that the trend is with PAC.
PAC’s stock has been in an uptrend lately, and importantly, this rise in the stock is not based on speculations, rather are backed by real developments (already discussed above). In last one-month or so, PAC’s stock has jumped from C$0.29 to C$0.77 currently and has been in a secular uptrend. On the other hand, NVO’s share, which has also gained during the same period (though not as steep as PAC), was seen pulling back in the last week or so, when it dropped from C$6.22 to C$5.96.
Another point making PAC a preferred choice is its beta. Though PAC has beta on the higher side (over 4), it could work well for the investors in current times and help magnify the returns, when the market is getting positive vibes from all around. On the other hand, NVO has a negative beta, meaning the share could move in the opposite of the general market.
Talking of net income, though both of them are incurring losses, PAC has been able to lower its net losses significantly over the past three years. On the other hand, NVO’s net losses have increased drastically over the past few years. The figure below represents NVO’s net income for past four quarters.
Source: Yahoo finance
Pacton Gold is poised well to unlock some real value for the investors. The company, it seems, has a well-defined and clearly laid plan, and is now working well to execute it perfectly. PAC raising more funds via private placement, and at the same time, acquiring strategic portfolios is all part of the bigger and long-term plan to ensure growth, both for the company and investors as well.