Canadian gold miner Barrick Gold (TSE:ABX) may be on the rise, but it is hardly Canada’s only gold miner. Troilus Gold Corp (TSE:TLG), is also in the fray, and drawing support from Canada’s conservatives as a “key Canadian resource development.” That was enough for investors, who sent shares surging up nearly 5% in Tuesday morning’s trading.
Troilus Gold, which launched a new project in Quebec that it named after itself, is considered pretty big in Canada. It is expected to bring in C$1.8 billion over the next 22 years, which is the expected operating life of the project in question. That was enough for the Conservative Party of Canada to declare it a “key Canadian resource development,” and talking it up in very strong terms.
In fact, Canadian conservatives declared the Troilus project a means to “…stand on our own two feet and stand up to the Americans.” Which strikes the appropriate nationalistic sentiment, even if the logic is a bit unclear how one gold mining operation that will pull in roughly the equivalent of less than two weeks’ worth of Vermont’s total earnings in 2023 at US $35 billion annually, over the course of 22 years, will allow Canada to “stand up to the Americans.”
Pulling in Funding
Regardless of the amount, or how long it will take to be realized, Troilus is making headway by any standard. In fact, it managed to get together several global lenders to get $700 million in project support. This, coupled with four letters of intent obtained from export credit agencies, will give Troilus Gold support to the tune of around $1.3 billion.
Between that financial support, and the Canadian government recently seen easing up on standards for resource development with the “one project, one review” plan, this should help get Troilus to the point where it is pulling shiny rocks out of the ground a whole lot sooner. However, the support for the project is still contingent on a few key points, like final approvals and the results of due diligence studies. If these are successful, though, the cash should start flowing.
Is Troilus Gold Corp Stock a Good Buy Right Now?
Turning to Wall Street, no analysts currently hold a position on TSE:TLG stock, so instead, we turn to the last five days of trading. And Troilus Gold is up for the last five days, gaining 3.61% in modest trading. Shares were up at the beginning, before losing ground, mostly plateauing, then recovering before another loss followed by another recovery.
