TSXV:INCA - Post Discussion
Post by
MarketMakerss on Jan 18, 2024 6:19pm
Gold Exposure Without the Mining Risks
Got enough explorers in your portfolio but like the exposure to gold mining? Check out Inca One Gold (INCA.v INCAF).
Operating two mineral processing facilities in Peru, INCA has established itself as a gold producer and a trusted leader in servicing the permitting, artisanal and small-scale mining sectors.
The two facilities, the Chala One and Kori One Plants, have successfully produced over 130,000 ounces of gold, generating over $400M in sales from its operations.
In its 9th year of commercial operations, INCA has 450 TPD combined permitted operating capacity with record sales of US$51.3M and gold production of 24,579 oz in calendar 2022 where it was operating at 42% capacity.
Once fully funded, INCA plans to ramp up to full capacity, increase its grade and produce at 100,000 oz gold per year.
As of 2021, mining is the dominant sector of the Peruvian economy, contributing 10% to GDP and accounting for $27.2B in mineral exports.
Considered one of the top 10 richest mineral-producing countries in the world, Peru is one of the biggest producers of mineral commodities in the world and is Latin America's top annual gold producer.
Currently, it's estimated that only 0.25% of the country's territory is being explored.
Similar to a Royalty company with numerous advantages to cash flow as opposed to a traditional gold mining company, INCA has a range of benefits including:
-
Cost based on gold spot price
-
No exploration, development or mining risk
-
No end to mine life
-
Generates cash flow quickly
-
Increased exposure to higher gold prices
-
Stable revenues in low prices markets
-
Margins turnover every 45 days
-
Original working capital reinvested up to 8c/year
-
Generate dividends to shareholders faster
Last month, INCA reported its sale revenue in November reached US$4.6M from the sale of over 2,250 ounces of gold Dore, a 70% increase over the prior month of October driven primarily by an increase in the number of exports, ounces sold and a higher gold price.
Year-over-year operations saw increases with deliveries up 66%, milling up 27% and gold production up 49% compared to last November 2022.
Deliveries in November reached their highest level (7,000 tonnes) since May 2022, representing a 21% increase over the prior month.
The latest news from INCA saw the closure of the first trance of its non-brokered private placement for gross proceeds off $696,900. The closing of the second and final tranche is expected to occur at the end of January.
Posted on Behalf of Inca One Gold Corp.
Be the first to comment on this post