1911 Gold - Vision for the future ................
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Posted On: 11/07/2024 2:04:23 AM
1911 Gold - Vision for the future ..................................
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1911 Gold - Vision for the future
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Gold Price
https://mrci.com/pdf/gc.pdf
https://stockcharts.com/h-sc/ui?s=%24GOLD&...e_vignette
Declining gold price from $1,900 to $1,100 (2011 to 2015) has decimated many mining explorers and marginal gold producers, it also culled the precursor debt-ridden company, San Gold. With current gold price at $2700, surging towards $3,000, triggered by gold buying among central banks worldwide, with All-In-Sustaining-Cost at around $1400 per ounce and without debts payment, there is no doubt that 1911 Gold's operation will be profitable.
It appears that CEO Shaun Heinrichs determines to grow the company organically into a major player in the gold producing arena. There is an excellent chance that the company will succeed because all the essential infrastructure is in place and the company is debt-free. With the earnest support of the shareholders, the company can make an equity financing for $40 million with minimal share dilution to replenish the mining equipment that Klondex took away. The management plans to delineate gold resources to 2 million ounces or more then will re-open some or all of the mines in the Truth North Mine Complex: Truth North, Hinge, Cohiba all of which had historical high grade gold production. Shortly after gold production has started, Ogama-Rockland mine and Central Manitoba mine will join in to accelerate gold production. Imagine producing 75,000 ounces of gold annually at gold price of $2,600 with AISC at around $1,400, production profit will be $1,200 per ounce produced. Annual production profit will be around $90 million (CAN$125 million). 1911 Gold will grow organically and swiftly in the coming 2 to 2 1/2 years. With accretive earnings and cash in the coffer, with market capitalization exceeding $100 million, 1911 Gold will be the leader among its peers! Looking beyond 2.5 years, the company will be stepping out the regional footprint into a wider operation.
1911 Gold's Production Cost:
Equipment to get the underground mine operating: $40 million = $20 per ounce ($40 million / 2 million ounces)
Cash Cost is between $700 and $800 per ounce.
Current Average All-In-Sustaining-Cost of mid-tier gold producers: $1400 per ounce.
Production Cost = [Equipment Cost + Cost to Operate] / Total Gold ounces
= $20 + $1400 = $1420 per ounce
Gold Sales: $2600 per ounce
Future Gross Production Profit (excluding administrative cost, exploration cost, maintenance cost) = $2600 - $1420 = $1180 per ounce = $2.36 Billion for 2 million ounces (CAN$3 Billion).
Fact sheet:
Daily ores throughput: Minimum 1,300 tonnes per day, expandable to 2,500 tonnes per day, average 1,900 tonnes per day.
Daily gold production: Average 1,900 tonnes per day x gold grade of 6 grams / tonne = 407 ounces per day
Annual operating days: 250 days (closed on holidays and weekends to mitigate miner fatigue and down times)
Annual gold production: 407 ounces per day x 250 days = 101,750 ounces
Annual gold sales: 101,750 ounces x $2,600 per ounce = $264 million
Here is a conjectured Quarterly Financial Report during production :
https://investorshangout.com/images/MYImages/...ancial.jpg
Certainly the company is a compelling buyout target of a major producer due to this well equipped infrastructure:
- The established 1,300 tonnes per day ore processing mill, expandable to 2,500 tonnes per day. It has a replacement value of US$300 million.
- The underground gold mines with historical 2 million ounces gold production and further mineral extensions.
- The 580 square kilometers of exploration land with high grade gold resources potential based on historical and recent drilling data.
- 1 million ounces of current gold resources with new resource updates pending. The goal is to reach 2 million ounces or more.
- 1911 Gold is debt-free, so the transaction does not involve paying off debts.
At 2 millions ounces of gold resources, the company's reasonable Enterprise Value (EV) is $200 million, but the consideration is only for the gold resource value, it does not account for value of the mill, the underground mines and the enormous prolific exploration land. The company could worth as much as $400 million or $2.60 per share (CAN$3.30) at 151 million shares outstanding.
The buyer's Total Acquisition Cost (TAC) per ounce gold :
TAC = [Cost to Acquire + Cost to Build + Cost to Operate] / Total Gold ounces
Enterprise Value (EV): $100 per ounce. ($200 million for 2 million ounces of gold).
Equipment to get the underground mine operating: $40 million = $20 per ounce ($40 million / 2 million ounces)
All-In-Sustaining-Cost (AISC): $1400 per ounce
TAC = $100 +$20 + $1400 = $1520 per ounce
Gold Sales: $2600 per ounce
Future Gross Production Profit = $2600 - $1520 = $1080 per ounce = $2.16 Billion for 2 million ounces (CAN$2.8 Billion).
How to pick a winning mining explorer / emerging gold producer. Read this and you will know 1911 Gold has all the requirements to succeed. When the company succeeds, its shareholders will also succeed, patience will pay off.
https://www.opens.co/articles/junior-mining-c...es-failure
=========================
1911 Gold - Vision for the future
=========================
Gold Price
https://mrci.com/pdf/gc.pdf
https://stockcharts.com/h-sc/ui?s=%24GOLD&...e_vignette
Declining gold price from $1,900 to $1,100 (2011 to 2015) has decimated many mining explorers and marginal gold producers, it also culled the precursor debt-ridden company, San Gold. With current gold price at $2700, surging towards $3,000, triggered by gold buying among central banks worldwide, with All-In-Sustaining-Cost at around $1400 per ounce and without debts payment, there is no doubt that 1911 Gold's operation will be profitable.
It appears that CEO Shaun Heinrichs determines to grow the company organically into a major player in the gold producing arena. There is an excellent chance that the company will succeed because all the essential infrastructure is in place and the company is debt-free. With the earnest support of the shareholders, the company can make an equity financing for $40 million with minimal share dilution to replenish the mining equipment that Klondex took away. The management plans to delineate gold resources to 2 million ounces or more then will re-open some or all of the mines in the Truth North Mine Complex: Truth North, Hinge, Cohiba all of which had historical high grade gold production. Shortly after gold production has started, Ogama-Rockland mine and Central Manitoba mine will join in to accelerate gold production. Imagine producing 75,000 ounces of gold annually at gold price of $2,600 with AISC at around $1,400, production profit will be $1,200 per ounce produced. Annual production profit will be around $90 million (CAN$125 million). 1911 Gold will grow organically and swiftly in the coming 2 to 2 1/2 years. With accretive earnings and cash in the coffer, with market capitalization exceeding $100 million, 1911 Gold will be the leader among its peers! Looking beyond 2.5 years, the company will be stepping out the regional footprint into a wider operation.
1911 Gold's Production Cost:
Equipment to get the underground mine operating: $40 million = $20 per ounce ($40 million / 2 million ounces)
Cash Cost is between $700 and $800 per ounce.
Current Average All-In-Sustaining-Cost of mid-tier gold producers: $1400 per ounce.
Production Cost = [Equipment Cost + Cost to Operate] / Total Gold ounces
= $20 + $1400 = $1420 per ounce
Gold Sales: $2600 per ounce
Future Gross Production Profit (excluding administrative cost, exploration cost, maintenance cost) = $2600 - $1420 = $1180 per ounce = $2.36 Billion for 2 million ounces (CAN$3 Billion).
Fact sheet:
Daily ores throughput: Minimum 1,300 tonnes per day, expandable to 2,500 tonnes per day, average 1,900 tonnes per day.
Daily gold production: Average 1,900 tonnes per day x gold grade of 6 grams / tonne = 407 ounces per day
Annual operating days: 250 days (closed on holidays and weekends to mitigate miner fatigue and down times)
Annual gold production: 407 ounces per day x 250 days = 101,750 ounces
Annual gold sales: 101,750 ounces x $2,600 per ounce = $264 million
Here is a conjectured Quarterly Financial Report during production :
https://investorshangout.com/images/MYImages/...ancial.jpg
Certainly the company is a compelling buyout target of a major producer due to this well equipped infrastructure:
- The established 1,300 tonnes per day ore processing mill, expandable to 2,500 tonnes per day. It has a replacement value of US$300 million.
- The underground gold mines with historical 2 million ounces gold production and further mineral extensions.
- The 580 square kilometers of exploration land with high grade gold resources potential based on historical and recent drilling data.
- 1 million ounces of current gold resources with new resource updates pending. The goal is to reach 2 million ounces or more.
- 1911 Gold is debt-free, so the transaction does not involve paying off debts.
At 2 millions ounces of gold resources, the company's reasonable Enterprise Value (EV) is $200 million, but the consideration is only for the gold resource value, it does not account for value of the mill, the underground mines and the enormous prolific exploration land. The company could worth as much as $400 million or $2.60 per share (CAN$3.30) at 151 million shares outstanding.
The buyer's Total Acquisition Cost (TAC) per ounce gold :
TAC = [Cost to Acquire + Cost to Build + Cost to Operate] / Total Gold ounces
Enterprise Value (EV): $100 per ounce. ($200 million for 2 million ounces of gold).
Equipment to get the underground mine operating: $40 million = $20 per ounce ($40 million / 2 million ounces)
All-In-Sustaining-Cost (AISC): $1400 per ounce
TAC = $100 +$20 + $1400 = $1520 per ounce
Gold Sales: $2600 per ounce
Future Gross Production Profit = $2600 - $1520 = $1080 per ounce = $2.16 Billion for 2 million ounces (CAN$2.8 Billion).
How to pick a winning mining explorer / emerging gold producer. Read this and you will know 1911 Gold has all the requirements to succeed. When the company succeeds, its shareholders will also succeed, patience will pay off.
https://www.opens.co/articles/junior-mining-c...es-failure
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