Citing both potential Fed rate cuts and China's unwavering demand as key drivers, Goldman Sachs is continuing its bullish stance on gold, as prices hit record highs despite rising US interest rates which usually lower prices. (Source: https://www.investing.com/news/commodities-news/goldman-still-bullish-on-gold-china-underpinning-demand-outlook-3530437)
The Next Mid-Tier Canadian Gold Producer
On track to become the 'Next Mid-Tier Canadian Gold Producer', NexGold Mining (NEXG.v), created by merging two existing gold companies, is targeting the expansion of its resource of up to 10 million ounces at the Goliath Gold Complex.
NEXG's flagship, Goliath Gold Complex in Ontario, 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 and 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.
With a strategy involves a dual path of advancing the Goliath project towards production and pursuing exploration to discover new resources, NEXG 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.
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.
For more information, check out this Goldfinger Capital interview with NEXG's President, Morgan Lekstrom: https://www.youtube.com/watch?v=rNmtoWP8ERQ
Posted on Behalf of NexGold Mining Corp.