| | | MAI
IMO there is an opportunity right now for the savvy in Minera Alamos aka MAI.
MAI has had a tough 12 months as they developed their first of three planned Mexican gold mines, Santana in Durango, Mexico. A three year drought, now receding, negatively affecting operations because they wasn't enough water for their heap leach to operate as planned. As a result, earlier this year they put off planned ore extraction in favour of development work aimed at future expansion, to the extent that they extracted no ore in January, February, or May, but now are back rapidly increasing production while they wait for permits to expand the heap leach, with construction expected to start before year end. As a result, only 1071 oz Au were sold from the Santana Project in Q2, and gold inventory on the leach pad had dropped to 5446 oz as of June 30, 2023. Both numbers will be much higher in future quarterly reports.
Financially they remain in good share, with a cash stash of $8.2M and over $20M in working capital.
There will be steady news flow this quarter, including a new Resource Report for Snatana, closing the financing package for the construction of Cerro de Oro, the receipt of permits,, and the results of drilling at the Zata and Benjamin exploration targets at Santana. I already have way too much MAI in my portfolio but I am very tempted to use the current low share price to add to my stash. Particularly if gold takes off in the rest of the year as expected, a buy at current prices could be a real winner.
Message 34399827
Saville reminds us that in the current environment, evidence of economic weakness currently is being taken as bullish by both the gold and stock markets, but eventually economic weakness will be bullish for gold and bearish for the stock market |
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