Pure Gold Mining (TSX.V: PGM) (Pink: LRTNF) reviewed 9-30-2020
Market Cap: $643M (USD)
Share Price: $1.64 (USD)
Shares outstanding: 359,233,359
Cash on hand: $100M (CAD)
Long-term Debt: $10M (USD) drawn and $25M (USD) from Callable Gold Stream (Dec 2019).
Current operations: Expects Dec 2020 production
Credit: $65M (USD) in tranches at LIBOR + 5.75-6.75% annual.
Insiders own: 32.7%
Website: puregoldmining.ca
Investor Presentation: https://puregoldmining.ca/sites/default/files/uploads/presentation/file_upload/Pure_Gold_Slides_August_2020.pdf
Operates near Red Lake Ontario. The Pure Gold mine expects its first pour in December.
Targeting initial 60K – 100K oz. on production ramp-up (Dec 2020).
Permitted.
Pure Gold is funded thru production with a buffer of 20-30 M (CAD).
Eric Sprott and Rob McEwen are investors.
Anglogold Ashanti owns 15%.
Newmont-Goldcorp is an investor.
High-grade ore: 9 g / ton: 5th highest mine grade in Canada; 17th in the world.
Phase 1 target production numbers: 1.9B (CAD) revenue, 583M (CAD) free cash flow
AISC: $787 (USD) / oz.
Probable reserves 1 M oz; Phase 1. (as of Feb 2019 per 2019 Annual Report).
Phase 2 expansion is in the drilling stage. Fully funded construction.
Bottom line:
- Pure Gold is one of my favorite Developers
- I hold a portfolio position with a +7.9% weighting