Tax Loss Selling Season Bottom-Fishing Candidate: Banyan Gold

On the macro front, the Chinese economy keeps lagging despite lots of softening policies, and lots of European countries are into an official recession these days. However, the US keeps generating mixed economic data, increasing the likelihood of a soft landing by avoiding a recession, hereby causing the Federal Reserve to stay neutral and delay the anticipated pivot into rate cuts as inflation isn’t back to the 2% target yet although it has come down lately, depending on which numbers of course. Although gold has been trading around US$1950-2000/oz for a while now, sentiment for gold mining stocks has been negative for some reason, maybe amplified by inflated opex and capex, neutralizing most of the gold gains and thus economic viability.

Banyan Gold Corp. (TSXV:BYN) (OTCQB:BYAGF) is no exception to this, growing their Aurmac project located in the Yukon beyond the May 2023 NI43-101 compliant Inferred resource of 6.2Moz Au. Notwithstanding this, after finishing their 2023 drill program in July and releasing the results since, I noticed that the share price has been trending down during the summer, and could be an interesting candidate during upcoming tax loss selling season, and therefore this article will delve deeper into potential economics, peer comparisons and valuation.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

All tables are my own, unless stated otherwise.

Please note: the views, opinions, estimates, forecasts or predictions regarding Banyan Gold’s resource potential are those of the author alone and do not represent views, opinions, estimates, forecasts or predictions of Banyan or Banyan’s management. Banyan Gold has not in any way endorsed the views, opinions, estimates, forecasts or predictions provided by the author.

Tax loss selling is an annual phenomenon, causing many Canadian investors to sell losing positions to off-set gains they made during the same year, in order to pay as little capital gains taxes as possible. The selling is usually the most intense in the last 2 weeks before the Christmas holidays for obvious reasons, and usually stocks start to pick up again in between Christmas and New Year, and the first weeks of January. 2023 wasn’t a good year for many investors, so one could think there aren’t many gains to off-set, but nonetheless the selling continues and might provide better entry points. I do believe Banyan Gold is no exception, as it trades at 2 year lows.

Please find further information in the attachement.