The Next Mid-Tier Canadian Gold Producer The Next Mid-Tier Canadian Gold Producer - NexGold Mining (NEXG.v)
Insightful Goldfinger Capital interview with NEXG's President, Morgan Lekstrom, regarding the recent consolidation and renaming of the company, that merged two existing companies, Blackwolf Copper and Gold and Treasury Metals: https://www.youtube.com/watch?v=rNmtoWP8ERQ
Well-capitalized with C$16.4 million in cash, NEXG's current share structure consists of approximately 76 million shares outstanding and 16 million warrants, mostly held by insiders, which ensures minimal market overhang.
Near-Term Gold Production
Targeting the potential expansion of the resource up to 10 million ounces, NEXG's flagship project is the Goliath Gold Complex in Ontario, which boasts a projected NPV of $493M at 5% discount rate and IRR of 33.5% based on a gold price of US$1,950 per ounce.
Based on PFS, the project is poised for production with a forecasted 13-year mine life and anticipated production of 109,000 ounces of gold annually at a cash cost of US$892 per ounce.
As NEXG's strategy involves a dual path of advancing the Goliath project towards production and pursuing exploration to discover new resources, the company plans to split its focus between finalizing permitting and construction and significant exploration targeting an underexplored 65-kilometer strike area.
NEXG is aiming to become a leading mid-tier gold producer by acquiring and developing projects with a capital expenditure under $400 million and production potential of 80,000 to 120,000 ounces per year.
Potential Copper Production
Additionally, NEXG holds the Niblack project in Southeast Alaska, which has significant copper and gold resources and is considered a potential production asset. The company plans to focus on building a pipeline of producible assets to achieve 300,000 to 500,000 ounces of gold production annually within five years.
Conclusion
Significantly, NEXG's current valuation is considered low compared to its net asset value (NAV), trading at about 0.1x NAV, with the potential to reach 0.2x NAV as the company progresses.
Boasting a range of strategic advantages from experienced leadership and shareholder value NEXG offers a compelling gold investment opportunity, supported by a robust portfolio of projects, a clear strategic vision, and a strong commitment to sustainable development.
Full News Release: https://energyandgold.com/2024/07/15/nexgold-mining-the-next-mid-tier-canadian-gold-producer/
Posted on Behalf of NexGold Mining Corp.