RE:RE:RE:RE:RE:Great news out 476 oz first pour!!!This is a wonderful update! Sage has started pouring gold and going forward should have all in sustaining costs of around $1160/oz (sustaining capex, operating expenses, SG&A, smelter fee). With Canadian gold at $1600 SGX is turning $300-400 in EBITDA margin per ounce.
Clavos is permitted for 700 tons per day and should produce around 20 - 30,000 ounces per year which means SGX will have conservative base production of $6-8 million EBITDA per year with massive upside if they increase tonnage capacity and/or make a discovery that extends proven+probable reserves and mine life.
Recent private financings were done at much higher levels and the majority of the Cartesian warrants have been sold over the past year. With just over 100 million shares out SGX is worth $0.50 - $0.60 on base production with $1+ upside on production increases and new discoveries at Clavos and Onaman. In other words, marketcap is only $ 15mm and should be closer to $50mm+ after achieving production and building towards the reserves upgrade.
"In addition, we are pleased to report that the Clavos Mine complex has also been connected to grid power. The use of diesel gensets as an exclusive source of electrical power on site has presented significant challenges for the Clavos operation and slowed our progress in all areas, including dewatering, drilling and mining. We plan to continue an active definition and exploration drilling program aimed at updating and increasing the existing mineral resource estimate. We also expect to increase our mining rates and ship higher grade mineralized material mined from stopes in addition to lower-grade mineralized material from existing broken material left by the previous owners."
YUGE. Expect acceleration of drilling and exploration news over the comings weeks and months.