G Mining Ventures (TSX:GMIN) - Producing Gold by Year End

Описание: Interview with Dušan Petković, Senior VP, Corporate Strategy of G Mining Ventures

Our previous interview: https://www.cruxinvestor.com/posts/g-...

Recording date: 6th February 2024
Smooth Operator: G Mining Races to Join Gold's Top Ranks

G Mining Ventures is swiftly advancing one of Brazil's largest gold projects, with the first production imminent in 2024. The Tocantinzinho (TZ) mine will churn out 175,000 low-cost ounces annually for over a decade, funding both debt repayment and ambitious growth.

Success here has derisked G Mining's story, evidencing its construction expertise. The same skills now target consolidating additional assets to become a 500,000 ounce Americas producer. Attractive project metrics, capital structure and major shareholder backing give it a jump on rivals also aspiring towards mid-tier status.

Specifically, G Mining possesses several compelling attributes:

Timely Market Entry
Gold prices recently breached $1,900/oz, extending this year's rally above 8%. Investor and central bank buying has regained momentum as inflation and recessionary fears escalate. Yet lack of exciting new projects leaves the supply pipeline quite constrained. G Mining can capitalize on this backdrop with its fully funded TZ mine set to deliver first gold pour in just over 12 months.

Defensive Construction Abilities
Extensive industry experience enables G Mining's management team to directly execute all technical and engineering aspects of building projects. This degree of control, continuity and productivity optimization is unique for a junior developer. It provides confidence in meeting budgets and timeliness.

TZ has adhered to the schedule despite volatile macro conditions, with completion already 76% and within 5% of costs. Comparatively few surprises minimizes financing and dilution risks as well.

Strong Financial Position
Construction progress allows $430 million of TZ's $457 million capital budget to be committed already. Existing cash balances cover any residual expenditure. Additionally, in-the-money warrants if exercised could contribute extra liquidity nearing production start.

With capex fully funded and initial years generating 200,000+ ounces, G Mining expects to repay debt and internally finance its next chapter of acquisitive growth. Avoiding substantial dilution or project financings would be a major competitive advantage in bidding for quality assets.

Alignment with Major Shareholders
Respected institutions like La Mancha, Eldorado Gold and Frankin Nevada own large stakes after conducting extensive due diligence. Their vote of confidence and guidance steers strategy. La Mancha additionally brings deep operational expertise and relationships as veterans in the gold mining space.

Attractive Risk-Reward Profile
At only $115/oz in enterprise value per ounce of reserves, G Mining screens very reasonably priced at just 0.7x NPV ratios. Approaching catalysts could re-rate valuations closer to comparable single-asset producers trading above 1x NPV. Further de-risking TZ and adding acquisitions boosts upside from current levels. In turn, investors get positioning ahead of the next emerging mid-tier consolidator in the Americas.
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