RE:TGM Article
Thanks, I also found this. Apparently there has been an issue with all mayors being fired after the president left the country? Does anybody have more information on this?? How bad is this?
Source:
https://www.caesarsreport.com/blog/true-gold-minings-north-kao-is-promising-and-investors-shouldnt-be-too-worried-about-the-temporary-construction-halt/
True Gold Mining (TGM.V)has announced the results of the Preliminary Economic Assessment on the North Kao zone at the company’s Karma land package. The PEA was based on an inferred resource estimate of approximately 300,000 ounces at 0.98g/t. The initial capital expenditures are very low at less than $18M and this results in an after-tax NPV5% of almost $70M (discounted from 2022 to now) and an IRR of in excess of 200% as the AISC is just $652/oz.
We were expecting positive economics but these results are better than we anticipated and this obviously adds to the value of the Karma project as a whole. This strengthens our belief the Karma project is one of the best gold projects in West Africa right now. As the project is fully financed and permitted and has a low production cost, it might be one of the best gold investments out there especially as the situation in Burkina Faso seems to have been improving, despite the company recently having to temporarily suspend its construction activities. We got in touch withPatrick Reidof theOxygen Capital Group, and he expects the situation to be resolved soon, stating that ‘as a result of the government change all the Mayors in the country were sacked. As a result you have a power vacuum at the local levels. With the temporary loss of leadership some locals have taken the opportunity to try to reopen negotiations on agreements that have been previously settled and that were part of the public hearings during the exploitation permitting process