IPT, NTH, GQC, MAI, EDV x 2
Mexican miner Impact Silver aka IPT reported its Q3 results. Production was up modestly at the Zacualpan mines, with costs slightly down, while the ramp up at the Plomosas zinc mine has now reached 70% of nameplate capacity. IPT still managed to post Q3 loss of $1.3M, which left them with a cash stash of $6.4M and no debt. They think they will be able to start generating profits once Plomosas reaches full capacity.
But of course the reason to own IPT is not its profit/loss status but its leverage to the price of silver. I continue to hold in anticipation of a substantial increase in the PoS driving a substantial increase in the share price of IPT next year.
Message 34927164
Nord Precious Metals aka NTH released a brief update on its project to process surface railing dumps on its Castle Mine property in Ontario and then use the resulting waste to reinforce the underground mine to allow future ore extraction. According to NTH, new Ontario mining regulations expected to be proclaimed in 2025 will streamline the granting of permits for this type of operation.
Message 34925647
I have made no secret that I am skeptical about Goldquest Mining aka GQC's recent optimism that recent legistlative changes in the Dominican Republic have broken the permitting logjam that had held up development of its Romero Cu/Au project. There have been too many rumours and false starts, but now we get another useful piece of evidence.
Another Canadian mining junior called Unigold has announced they are accelerating exploration on one of their properties in the DR because the new system has made permitting much quicker and more straightforward.
It is looking more and more like the Romero ducks are all in a row...
Message 34925905
The IKN newsletter brought us a long update on Minero Alamos aka MAI in the wake of last week's unexpected PP. To see the details of the analysis, with which I largely agree, you'll need to become a subscriber, but after talking to the CEO IKN has decided to keep MAI at Top Pick, but on probation. Basically, the company will need to show, as predicted, better Q4 results from the Santana gold mine in Mexico, along with other indicators, to retain that status.
FWIW, in the wake of a site visit to the newly producing Lafigué gold mine in Côte d'Ivoire, Scotia issued a new analyst report on west African miner Endeavour Mining aka EDV. They were impressed, outlining how the operations was built so quickly and so soon after commencing production is already at nameplate capacity with ore grades coming in higher than expected and costs in line. They note the ability to produce above nameplate capacity for the next few years as long as the oxide ore remains available, and also the extensive exploration upside. Scotia kept EDV at Sector Outperform with a target of $40.
FWIW, in the wake of site visits to the Sabodala-Massawa (Senegal) and Lafigue (Côte d'Ivoire) mines, BMO issued a new analyst report for Endeavour Mining aka EDV. These are the two newest mines in EDV's holdings. BMO was generally very pleased with Lafigue but, citing a variety of issues, they are lowering expectations for Sabodala-Massawa, at least for the next few years. Still, pointing to the the next build, the Tanda-Iguela project in Côte d'Ivoire for a which a PFBS will be released shortly, they kept EDV at Outperform with a target of $45.
Saville opines that since the gold price rebounded so strongly last week, retracing more than half the decline, it may even retrace the entire decline before resuming the decline to an intermediate term low in Q1. |
