MAI, RRI, EDV
Mexican gold miner Minera Alamos aka MAI released a three part update.
First, they announced a $25M financing package for the costruction of their second mine, Cerro de Oro in Zacatecas. In general I like the terms, first because there is no equity component, i.e. no dilution. It comes in two parts. There will be a $15M loan, $5M of which will be available immediately for pre-costruction activities, with the rest available when they receive the construction permits, expected to arrive early next year. There is also a $10 royalty package, all of which can be bought back for gold or cash.
Next we hear about their producing mine, Sanatana in Sinaloa. The transition to production from Nicho Main has begun, and they continue to stack ore on the leach pads while they wait for permits to expand production by constructing new leach pads. They have also begun a new round of exploration drilling.
Finally, we get an outline of MAI's Q1 financial results. Due to the transition underway at Santana, we knew Q1 was going to be light, but they still managed to make net income of of $1.5M. Reflecting the transition, their cash stash decreased to $10.2M at year end, plenty enough to get them through the next while until the numbers start improving again. They remain debt free though that will change shortly when they begin to draw down the Cerro de Oro loan.
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Prospect generator Riverside Resources aka RRI released an update on its Duc prospect in the Porcupine mining district near Kapuskasing, Ontario. Shallow drilling had already identified gold minerlaization, and followup magnetic surveys have identified underlying structures. There will be further geophysics and mapping and sampling later in the summer in preparation for a more extensive drill programme.
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It has been interesting to watch the trading in west African gold miner Endeavour Mining aka EDV. Even as the overall sector is in the midst of a correction, EDV recently set a 52-wee high and continues to trade around the price peak set in 2020. Before that you have to go back to 2008 to find EDV's share price this high, so if gold does take off later this year as predicted by Saville and others, look out above!
Speaking of Saville, he continues to maintain that PMs are probably near a correction low, and that once the financial headwinds dissipate, they and the associated stock indices will take off to new ATHs, possibly as early as August. |
