Gold Miner Ignores High Gold Prices
The junior gold miner earned 7 cents a share in the last quarter, but not through gold production. Instead, the company sold small noncore assets and invested in the competition in order to make money.
Fronteer has $175 million in cash and no debt and continually invests a portion of that extra money -- $3 million to $5 million -- into other gold companies that have attractive projects but aren't necessarily practical to buy or partner with.
The company primarily has three gold mining projects in Nevada that should be producing by 2014. Shares are up 86% year to date. The stock has seven buy ratings and just one hold with an average price target of $9.33.I sat down with CEO Mark O'Dea at the Denver Gold Forum to delve into the company's growth strategy Do you think that Fronteer can really sustain this monster stock rally and growth rally that it's had ? O'Dea: You know I think when investors are evaluating which horses to back or which companies to get involved with we're seeing a trend towards higher quality in terms of grade and profitability, financial robustness. You look at the underpinnings of Fronteer and we've got excellent cash positions, we've got an industry leading balance sheet, we've got projects that are high quality. We're in jurisdictions that the market likes. We're a team that's been able to execute on our plans well. We've got no debt, we've got a nice tight capital structure and all those things have combined
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