Caracal in ZM top 101 Jan 2022 18:26
6. Caracal Gold (GCAT): 1.07p Target 2p
The idea of pricing a company to fly on listing is a simple, but every effective one which should is perhaps not appreciated or acted upon as much as it should be on the stock market. Enter Caracal Gold, which raised £5.5m in August. The premise then was that we are looking at a company which was set to “rapidly increase production to +50,000oz p.a. and build a JORC compliant resource base of +3Moz within 12-18 months.” All of this was initially given a valuation of less than £15m. It was therefore hardly surprising that the stock rose from below 1p to 1.85p in just 6 weeks. The premise remains the same going into 2022, only with the inflation outlook / Gold price looking far more bullish, and the bumper December announcement in the bag too.
This revealed agreements to acquire a 100% interest in the advanced Nyakafuru Gold Project and secure a 75% interest in the Simba Gold Project in Tanzania. In the wake of this news GCAT now has attributable gold resources of over 1.5Mozs, with 26 granted mining and prospecting licenses and 5 existing license applications. This is plenty to be getting on with for the new year, and with the shares still at a basement level market cap, anyone serious about prospects for Gold is likely to be running the rule over Caracal.