- Pacgold bought the largely unexplored Alice River Gold Project in 2020.
- The company listed in 2021, immediately embarking on an extensive exploration programme using modern technology.
- The Alice River Project is in a prospective area with little history of modern exploration over the last 20 years.
Gold explorer Pacgold was listed on the ASX in July 2021. In August, the company released the first of what would be many positive announcements about its Alice River Gold Project in Queensland.
On 15 August 2021, the company announced the start of a multi-discipline exploration programme at Alice River, with drilling to begin immediately.
The stock price moved sharply upward on 13 October following the release of positive exploration results.
By January 2022, Pacgold had identified and expanded a “high-grade gold zone” within the Alice River Project, the news of which sent the share price higher again.
Despite continuous positive announcements about the Alice River Gold Project, Pacgold’s stock price began a slow downward trend.
Top Australian Brokers
- City Index - Aussie shares from $5 - Read our review
- Pepperstone - Trading education - Read our review
- IC Markets - Experienced and highly regulated - Read our review
- eToro - Social and copy trading platform - Read our review
The project is located in a gold mining region of North Queensland. Pacgold acquired the project in December 2020. Despite active gold mines in the vicinity in the 1980s and 1990s, only limited exploration had been conducted at the Alice River Project over the last 20 years.
The company’s share price is essentially flat since its listing in 2021. Year over year, the price has dropped by 46.15%.
Source: ASX
The extensive and prolonged exploration and drilling programme has increased the company’s losses.
Pacgold Financial Performance
Source: ASX
An analyst at Alto Capital has a BUY recommendation on Pacgold, calling the company a “high risk and high reward emerging gold explorer” based on drilling six priority high-grade gold targets at Alice River.
Don’t Buy Just Yet
You will want to see this before you make any decisions.
Before you decide which shares to add to your portfolio you might want to take a look at this special report we recently published.
Our experts picked out The 5 best ASX shares to buy in 2023.
We’re giving away this valuable research for FREE.
Click below to secure your copy
