Golconda Gold Ltd V.GG

Alternate Symbol(s): GGGOF

Metals & Mining Gold

Golconda Gold Ltd. is a Canada-based un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. The Company operates through its wholly owned subsidiary, Galane Gold Mines Ltd., two assets: a producing gold mine which also has the rights to certain mineral exploration tenements (the mine and mineral exploration tenements collectively, the Galaxy Property) located in the Republic of South Africa (South Africa) through subsidiaries located in South Africa, and a gold and silver mine and processing infrastructure located in the United States of America (the Summit Property) that is in care and maintenance. The Galaxy gold is situated approximately eight kilometers (km) west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga Province of South Africa. The property covers approximately 58.6 square kilometers (km2) is part of the prolific Barberton Greenstone Belt.

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Golconda Gold Ltd > Summit Mine and Mill…..N Mexico 21,400 ounces per year

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Comment by nozzpackon Jul 10, 2024 2:22pm

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Post# 36126805

RE:Summit Mine and Mill…..N Mexico 21,400 ounces per year

This is an outstanding asset acquired very cheaply ...$17 m... in 2021 when no one wanted it.

Its FS estimated...

Low-cost precious metals mine with excellent project economics
- At a price forecast of US$25/oz of silver and US$1,700/oz of gold
  - Annual production of
    - 1.45M oz AgEq at a LOM average AISC of US$11.94/oz AgEq over a 7-year mine life; or
    - 21.4K oz AuEq at a LOM average AISC of US$733/oz AuEq over a 7-year mine life.
- The mine generates US$16.4M in average annual free cash flow and an after-tax NPV5%of US$96.6M
- Low re-start capex estimate of only US$4.1M Gold is now nearing $2400 US and Silver is over $31.
Using current prices, the NPV5% would be over $130 million US

Making no adjustments for metal price gains, the $16.4 million in free cash flow.....$21 million in C$.....about $0.25 per share ..would value the fair value of this asset of GG at about $100 million cad.
watch for news of the modest financing needed to restart the mine and mill next.
That will be very big news..

In summary, very deep value and substantial emerging value here which is almost totally ignored by the market .

This is how you get rich....Buy when no one wants it, sell when everyone wants it.

GLTA