First Mining Gold Corp (FFMGF)

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Dear Reader,

It’s “go time” for both the miners and junior miners on the Canadian TSX exchange this month as tax-loss selling becomes last year’s news and gold explorers get repriced to the upside. Patient investors received a nice boost of encouragement and profits while TSX Venture gold exploration/mining stocks have outperformed the overall market.

It can’t be denied that the tax-loss selling weighed heavily on the broader Canadian market, which has declined by 17% since the 11th of September. However, we can see that the tax-loss selling has abated, with a market-wide recovery taking hold in the new year:

While the TSX Venture Exchange shed 17%, the gold miners have done the complete opposite during this time frame, gaining 17%:

Now that the tax-loss selling is over and the TSX Venture Exchange is showing signs of a strong recovery, there’s absolutely nothing standing in the way of gold mining stocks, some of which were held back in the fourth quarter of 2018.

One example that comes to mind is First Mining Gold (TSX: FF, OTC: FFMGF), which became grossly underpriced due to 2018’s end-of-year tax-loss selling. Having acquired dozens of TSX Venture gold explorers in recent years, First Mining Gold slid along with the TSX Venture Composite Index – but as you can see, it was only coiling up for the big move:

First Mining Gold shares saw a significant gain, right after the closing of the tax-loss selling window. And now we can see a powerful chart pattern called a “bull flag” forming, which is a very bullish technical indicator and a likely sign of higher prices to come.

Seasonality is also a factor at play here, as gold tends to do well at the beginning of the year. Mining stocks are a popular way to magnify gains in precious metals, and Future Money Trends has been watching the sector very closely, so keep an eye out for precious metals and mining alerts coming very soon.

Recommendation: Consider shares of First Mining Gold (TSX: FF & US: FFMGF).

Best Regards,

Daniel Ameduri

Editor’s Note: I only own the stock recommendations in this letter.


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