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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (218111)	12/1/2025 11:32:39 AM
From: nicewatch	Respond to of 218863

fwiw: Stock Summary (from last analysis - 07/05/2025) Spanish Mountain Gold has a large open-pit gold project (Spanish Mountain) in Canada (British Columbia). In 2025, they released an updated PEA. Annual production of 200K oz at $1050 AISC years 1-5. Capex of $920M. NPV at $1.7B at $3300 gold. How do they finance that capex? Ouch. That is huge. Permitting will require another 2 years. They are hoping to be construction-ready in 2027. So, that means no production until 2030. It has a high capex for only 200,000 oz. of production, which makes it more difficult to finance. However, at $3500 gold, the payback can be fast, making financing possible. They have an FD market cap of only $69 million, with future reserves valued at $15 per oz. As long as gold prices remain strong, the only risk to shareholders is if they sell the project for a small premium (losing our upside opportunity). They have 35% insiders, including 11% by Eric Sprott and 18% by mangemet/board, so they are not likely to give it away for a small premium. They have 4.7 million oz. of M&I resources, plus significant exploration potential (it will grow in size). The main pit is still open in all directions and the nearby Phoenix zone has been drilled and appears to have a 3 km strike. Phase one only targets 2 million oz. I think this is a 6M oz project. So, that values the company at $10 per oz today. This is at least a 6 million oz. mine, and quite possibly larger. That means they will likely be ramping up to 300,000 oz of annual production or more. The grade will drop and cash costs will rise as they expand production, but the leverage is huge at higher gold prices. One red flag is the likely high share dilution required for funding the feasibility study and permitting, plus financing the large capex. Dilution should reduce returns significantly. Another red flag is how long it will take to permit the project. Once it is permitted, it will rocket higher, Also, British Columbia can be a location with possible native issues that can create permit issues, especially open pit mines in that part of Canada. They list this as something they need to address in their current company presentation. As an optionality play, it looks strong. It is economic at $3K gold. It will get built. Plus, the exploration potential makes it very juicy.