Is Birch Gold Group a Good Investment?

• Birch Gold Group is a gold mining company.
• Birch Gold Group was founded in 2015 and rebranded in 2019.
• Birch Gold Group is a diversified gold-focused global mining company with assets worldwide.

Birch Gold Group (BGG), founded in 2015, is a diversified gold-focused global mining company with assets worldwide. The company owns and operates gold mines, processing facilities, and land holdings in Canada, the United States, and Mexico. In 2018, Birch Gold Group acquired 10% of royalty rights and 1,000 acres of land in the Yukon Territory for $10.1 million. The company changed its name to Birch Gold Group in 2019.
Birch Gold Group's 2022 fiscal year revenue is projected at $120 million, a 46% increase over 2019 revenue. The company projects 2022 net income at approximately $24 million.

Birch Gold Group Long-Term Chart (2007 - 2020)

Source: YCharts.com
Birch Gold Group is a recent IPO, having gone public in November 2017. So, the company is still young.
Birch Gold Group's share price has experienced volatility, thus posing a risk to investors. To mitigate this risk, investors should thoroughly research the company.
The company's current share price is $2.58, giving it a market cap of $180.7 million. Birch Gold Group's 52-week range is $1.80 - $3.64, which represents a 33.15% increase from its IPO price of $2.10.

Birch Gold Group Short-Term Chart (2018 - 2020)

Source: Barchart.com
Birch Gold Group is a gold-focused investment company formed in Canada in 2018. The company is primarily focused on acquiring gold-related assets, including gold, precious metal mining, and royalties. The company's objective is to provide long-term capital appreciation by investing in undervalued assets. Birch Gold Group is based in New York and has 1.61 million shares outstanding with 50.9 million fully diluted shares.
Birch Gold Group's stock performance has been fairly average over the last 12 months, with a 11.07% return in 2019 and a 7.39% return in 2020. The shares are trading at 6.20 times 2020 estimated book value-the lowest valuation multiple of any major gold company.
Birch Gold Group's stock chart is telling. The company saw its share price collapse from a peak of around $20 in July 2019 to a low of $1.50 in January 2020. The stock has recovered strongly in 2020, largely on the promise of its entry into the gold streaming market.
Birch Gold Group's share price is poised to break out in 2020, given it has broken out of a consolidation pattern over the past couple of months. Traders should keep an eye on this stock as it attempts another breakout.

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The Bottom Line

Birch Gold Group's investment proposition is simple. It seeks to provide investors with exposure to gold bullion, the precious metal that has survived the test of time, while also providing recent gains and income. The company endeavors to do this through investments in mining stocks, physical bullion, and exchange-traded funds (ETFs).