RE:RE:Another green day on the market todayThat is very possible. In Brad's latest interview, posted by someone else here (https://www.bnamericas.com/en/interviews/gogold-plotting-path-to-mid-tier-status-at-los-ricos)
he had this to say (small excerpt):
BNamericas: Are you considering scenarios in which ore from Los Ricos North and South could be processed at the same plant?
Langille: One thing is Los Ricos North is a bit behind Los Ricos South. That’s because consolidation work at Los Ricos North delayed it.
We needed additional claims there which we got in late 2019 and early 2020. They're 15km apart.
I think that we are going to finish that PFS based on a standalone Los Ricos South [operation], and we will have a bunch more drilling and work done on Los Ricos North.
It doesn’t rule out that we will say wait now, maybe we should rejig this and push it out a little bit further, and have one 15,000t/d processing facility for both.
It all comes down to the cost of trucking ore, and what that ore looks like in terms of value per ton from Los Ricos North.
Our current plan would be more for sequenced growth, where we say, US$125mn for a 5,000t/d mill on Los Ricos South, we build that, we're generating US$100mn/y free cash flow.
Then we build Los Ricos North, which we view in our lens today as being a lot bigger, probably a 10,000-15,000t/d mill.
We leverage up on that cash flow to get Los Ricos North built later.
That’s our pipeline.
If you look at the pipeline of the majors, whether it’s a gold or silver major, remembering that 40% of this is gold, this obviously is developing into the kind of asset that would fit very nicely into many pipelines.
If a major came in and acquired this, they wouldn’t be as concerned about getting into production as quickly, and they would probably complete all the drilling at Los Ricos North and would be really looking at that trade-off of having one much bigger processing facility and they would be better able to capitalize the one much larger capital number.
Because of where the project is going there's a real possibility that we could get some interesting offers on this.
I’m the second largest shareholder of the company. I’m very well aligned with all of our investors, and this is all about making money.
I don’t need to build mine number five and six in my career, so we're going to do whatever makes sense for all the shareholders at the end of the day.
We can never control what happens in someone else’s boardroom. What we control is that we're doing good exploration, good design, and at the end of it we're going to build a mine.
BNamericas: Has there been interest to date?
Langille: There has been interest. That would be very normal, when you have the magnitude of discovery we've had – they always come knocking.
With every project I've ever been involved in there has always been interest. Majors have geologists who are just hired to go and look at projects.
It’s separating the tire-kickers from the people you'd like to transact with and who are serious. We have both.
BNamericas: What’s your strategic longer-term aim for the company and does that involve M&A?
Langille: You can’t control what another company does, as far as giving you an offer that's acceptable to shareholders, but our longer-term plan is to plow ahead and get these things built, which are going to be transformational for the company.
And if along the way a really great offer comes along, we're open to that.
Next week should tell the tale. If we do or don't get drill results couyld be significant!