Amani Gold Ltd, listed as (ASX:ANL) and (OTC:BRYYF) is a gold mining company based in Australia and operating in the Democratic Republic of the Congo. The company’s new Board and Management is committed to developing its current projects through three main tiers: discovery; mining; and acquisition. The company’s stock price recently increased more than 300% over a period of two days and is currently trading at $0.0033, making it one of the cheap gold stocks worth watching in the days ahead.
The sudden interest in BRYYF was likely triggered by the release of its annual report to shareholders. The report highlights a recent feasibility study conducted by the company, which revealed a huge potential for the site to grow via deeper drilling along the orebody. Based on the report, there are indications that gold from BRYYF’s two deposits – the Kebigada and the Douze Match deposits – could hold a staggering 4.6 million ounces of gold. At the current price of gold, this amounts to over $8 billion.
BRYYF’s central operation, the Giro Gold Project, is comprised of two exploration permits that span an area of 497 square km. A relatively under-explored area, the land could be very promising given that its neighboring mine produces over 600,000 ounces of gold annually.
Of course there are risks attached to the company’s activities such as geological and technical risks which investors should be cautious of. The company’s new management has highlighted the short-term allocation of funds to their Giro project but are still seeking additional gold projects that could complement Giro. Currently the company is focused on the development and commercialization of its Giro Gold Project to raise working capital. Part of the funds raised will also be used to settle convertible notes in early 2022.
BRYYF recently issued 7 billion shares to raise $7 million. Already, 1.8 billion of the shares have been issued while the remaining shares are expected to be released by early November pending board approval. Unlike other companies, this dilution will facilitate real project growth, likely bringing good ROIs for BRYYF’s shareholders and investors’ interested in cheap gold stocks.
Bullish investors have also highlighted the company’s interesting shareholders. With an OS of around 14 billion, 9.3 billion are held by large institutions like Merrill Lynch, BNP Paribas, and Citicorp. This large institutional holding indicates BRYYF’s strong fundamentals and is a very bullish sign for investors.
According to the most recent quarterly report, almost a third of their expenditures – roughly $348 thousand – went to exploration and evaluation related activities. The remaining $647 thousand was spent in relation to staff, administration and corporate costs. As it stands, the BRYYF has $873 thousand in on hand cash.
Investors like @Jcazz17 are all hands on deck when it comes to BRYYF.
Previously trading at $0.0012 prior to the release of its annual report, the stock has witnessed an over 300% increase in its value – peaking at $0.0049. Currently, BRYYF is trading at $0.0021, with a primary support line at .0018 and a secondary one at .0014. Its resistance point appears near .0026. The MACD had a bearish crossover on October 1st and has sloped down very rapidly since. The RSI also took a dive and has settled near 38. While accumulation initially spiked up mirroring the stock’s value at the end of September, it is now declining.
Should You Buy?
As one of the most relevant cheap gold stocks today, BRYYF’s recent volatility should be no surprise. Fundamentally, the company is quite strong with a feasibility study that boasts an extremely bullish outlook. However, given BRYYF’s sector and the nature of its operations, this stock presents some risks to investors.
But with big players in one BRYYF and its strong shareholders, bullish investors could find an entry point after its most recent dip in anticipation of great things to come. Once the dust settles from the market’s recent bearish activity, BRYYF’s stock may reach a share value that is more reflective of the company’s worth. With the right momentum, BRYYF could once again touch its recent high of $0.0049.
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