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Bullboard - Stock Discussion Forum Probe Gold Inc T.PRB

Alternate Symbol(s):  PROBF

Probe Gold Inc. is a Canadian gold exploration company focused on the acquisition, exploration, and development of highly prospective gold properties. The owns 100% of its flagship asset, the multimillion-ounce Novador Gold Project in Quebec, as well as an early-stage Detour Gold Quebec project. The Company holds a large land package of approximately 1685-square-kilometres of exploration ground... see more

TSX:PRB - Post Discussion

Probe Gold Inc > Two Different Stories
View:
Post by Goodluck395 on Nov 03, 2024 5:45pm

Two Different Stories

The two biggest gold miners recently released their 3rd

quarter earnings results.

An interesting contrast 

Since Newmont released their earnings, it's 

market cap lost more than US$10 billion.

To put it perspective the market cap of 

Gold Fields is US$14.50 b
Kinross US$12.26b
 IAMGold US$3.1b

One of the reasons was the increase in contracted 

labor costs . 50% of NEM costs in total is labor and of that 

half are for contracted labor. In the Q&A portion of the conference call an analyst mentioned an inflation rate for the contracted workers 
of 12 to 14 % which the CEO refused to confirm by not 
answering the analyst's question. The CEO did confirm that they had budgeted zero % increase for labor costs.

The  CEO said this in an interview 

"....costs of running camps , cost of flying people 
to and from camps- that's where we are seeing some 
escalation beyond what we'd  assumed at the start of the year."

AEM said that its total labor costs represent 45% of total costs of which a third are contracted workers.
Their labor inflation rate is at 3% for both AEM workers 
and contractor workers with low employee turnover and vacancy rates.
Also mentioned was that energy costs including diesel costs were 12% of total costs which came in lower.
One of the comments by AEM was that employees value  medical care ( and specialized facilities) and "educational centers for children ".

IMO this focus on location of deposit and worker attitudes reflects very positively for Probe Gold.

It highlights that the  location of one's deposit is extremely important. The Novador deposit is a hop from Val d'Or
which is a essentially a mining town of more than 30 000 inhabitants with a young skilled workforce.
"Employee infrastructure" includes housing, schools medical care and hospital. 

This verifies that Probe's Novador project should be  viewed at a premium.

Comment by JuniorMiner2014 on Nov 04, 2024 2:48pm
Excellent point, one I had not considered.  Thanks for sharing. JM. 
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