KL's Fosterville mineIn the latest news release, Fosterville went from 17.2 g/t in Q2 to 14.1 g/t in Q3.
Possibly they mixed in some low grade which they had at Fosterville to increase mine life like they did in the past.
Compare those grades with GCM's Providencia mine. They went from 3.7 g/t last year to 11 g/t in Q2 to 17.5 g/t in Q3. They are in the middle of ramping up grade.
If you look at their multiple 200 g/t drill holes, it may remind you of the high grades at Fosterville:
https://www.stockhouse.com/news/press-releases/2017/09/18/gran-colombia-gold-announces-multiple-high-grade-drill-results-from-its-2017 GCM is a turn around story, just like the early days of Newmarket Gold which had Fosterville and then went on to become a multi-bagger, before KL bought them out. Fosterville was originally mining low grade, but once they reached the high grade, they gushed with free cash. The same is in the process of happening with GCM too.
Their production should be 200k oz next year if they follow their mine plan. They have one of the highest grade mines in the world. The crazy thing is that their market cap is currently a tiny CAD$38m. One reason it is so cheap is because many people are afraid of the debt. But $46m of that will disappear soon because their 2018 debentures will convert next year at the option of the company. With their continuing debt buyback and increasing free cash flow, their debt could be under $70m by the end of next year.
Just a suggestion because Providencia/GCM reminds me so much of Fosterville/Newmarket Gold. Higher risk, but also higher reward.