GoGold Resources (GGD) - Mexico's Next $$ Billion $$ Silver Giant
Seeking Alpha Analyst Since 2019
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- TSX: GGD.
- Shares Outstanding: 264.43M.
- Share price C$2.65 (05.01.2021).
- Market Cap: C$700.74M.
GoGold has announced the release of financial results for the quarter and year ending September 30, 2020 with record annual revenue of USD$39.5M from the sale of 2.2Moz AgEq million which provided cash flow from operations before working capital changes of USD$8.7M.
Moving into 2021, the key milestones for GoGold will include a Preliminary Economic Assessment at Los Ricos South in January, an aggressive 100,000m drill programme at Los Ricos North focussed on discovery and an initial mineral resource at Los Ricos North in the summer of 2021.
We spoke to Bradley Langille, President & CEO of GoGold Resources for a roundup of 2020 which has been a great year for the company and to look towards plans for 2021 with their exciting discoveries in the Los Ricos district.
We liked this story the first time we talked to Languille in late 2019. A long record of doing what they say they will do, saying what they will do. And we haven't been disappointed. Share price up from $0.40 to $2.60, and starting to show the scale of the project still to come.
2020 has been a strange year for the whole world due to Covid-19 and GoGold continues to deal with those issues but as far as the growth of the assets of the company and their production, it's been a tremendous year. They’ve done very well.
GoGold has been a company for 10-years and Langille has been the CEO for the last 6-years. They have an operating mine, which is making good cash flow. At current prices, GoGold is making well over CAD$2M a month of free cash flow at the mine. The company is self-funding a large exploration development asset in Jalisco State, Mexico. The team has been in Mexico for almost 25-years and has built 3 mines and majorly refurbished a 4th mine in 4 companies. The team is very experienced and have managed some big projects in that time. They sold the Ocampo district to Carlos Slim for CAD$750M. They bought the El Cubo Mine for CAD$20M, doubled the production and sold it for CAD$375M. The GoGold project at the Los Ricos district is very exciting for the company and they think it will be the biggest project they’ve had in 20-years. Drilling at the Los Ricos district started in March 2019 and about 50,000m has been drilled so far. In 2021, they plan to spend another CAD$20M on exploration by drilling another 100,000m at Los Ricos. GoGold is self-funding that exploration and also has CAD$52M in the bank with no debt, so are very well-positioned for 2021.
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