Osisko Gold: I Tried To Break The Bull Case, And I'm Still Buying

The Bullionaire 811 Followers Follow Summary Osisko Gold is building a fully permitted BC gold mine, yet the stock trades below half the value of its reserves alone.Osisko Gold is building a fully permitted BC. I tested five reasons to sell: a cost overrun, thin funding, 9.25% debt, another delay and US$3,500 gold. Stacked together, the company-specific charges still leave about US$5.40 a share, roughly twice today's price. The market is pricing the build and the cost of money; the weak spot is a US$120M Trafigura loan that is not signed yet. Buy, small position, with a US$3.67 price target, 0.4x my risked value of US$9.17. TommyIX/iStock via Getty Images Osisko Gold ( OGG ) ( OGG:CA ), which was previously known as Osisko Development, made its construction decision regarding the Cariboo project on 14 September. Two weeks later, it closed US$600M of senior This article was written by The Bullionaire 811 Followers Follow I'm a self-taught investor with a passion for Gold and Macroeconomics.I started investing in 2014. Despite my deep focus on the mining sector, I still approach it with humility. There is always more to learn.My Worldview is simple: Long Gold, Short Fiat. This conviction shapes my portfolio and my life. I am not a proponent of fear selling and do not approach gold investing as a panic trade. I view precious metals as the most real form of money and the producers as genuine value creators. That said, I also believe in diversification with correct position sizing based on personal situation. Investing for me is not about maximizing returns, but about being financially resilient in any macro environment.I hold major producers like Barrick Gold in my portfolio and do not trade them. I am also looking at junior miners where the upside justifies the risk.All my analysis starts with the Reserves Quality, Grade, Mine Life, and AISC to assess the value of the company's assets, followed by risk analysis. Valuation for me is always the anchor. I don't buy stories; I buy numbers.I've joined Seeking Alpha, as I have gained a lot of value from other authors and the platform, and want to contribute back with coverage across the US and Canadian mining industry. Disclaimer: Closely associated with Seeking Alpha analyst "Andrew Mach". Analyst’s Disclosure: I/we have a beneficial long position in the shares of OGG, OGG:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.