 | Unsubscribe | |
Below is a message from one of our sponsors
This Undervalued Mid-Tier Gold Producer Just Found Indications of a District-Scale Opportunity
Calibre Mining (CXB.TO) (CXBMF) already produces around 300,000 ounces of gold a year.
Its balance sheet is robust, its cash flow steady and dependable — thanks to a number of operating mines.
And by next year, Calibre should be in the next league up.
Thanks to the recently-acquired Valentine Project — with one mine already 50% developed, and gold production scheduled to commence the first half of 2025 — Calibre is on track to add another ~200,000 ounces or so of annual gold production.
That would vault overall production to approximately a half a million ounces a year.
To put that in perspective, other mid-tier gold producers of a similar size — like Alamos Gold or Eldorado Gold — have market caps in the $3-5 billion range.
Today, Calibre has a market cap still shy of $1 billion.
When Calibre has similar production — in H1 2025 — it is not unreasonable to anticipate a potential re-rating and the market cap to keep up.
This coming gold production is not a hoped-for projection.
It is not a best-case scenario.
This involves defined resources — about 5 million ounces of gold in the Valentine Gold Mine, located in Canada, already explored and proven.
The mine is 50% through construction.
The finishing touches are happening now — fully financed, with healthy cash flow behind it should unexpected expenses arise.
Barring any unplanned obstacles, by this time next year Calibre Mining (TSX:CXB, OTC:CXBMF) should be producing at the same rate as its soon-to-be peers.
There's no such thing as a guarantee in the investing world — and that's twice as true for the mining industry.
But a fully-funded mine going into a proven resource is about as close as you can get.
Calibre offers one of the most obvious plays in the entire precious metal sector — with a path to half a million ounces in production, ramping up next year.
Yet, in all honesty, this company's future value could wind up even higher than its 500k oz/year peers.
Not because gold is still in a bull run — meaning those 500,000 ounces of production are likely to be more valuable next year than they are currently, lifting all gold production companies.
Instead, Calibre is likely to outperform because the Valentine property has barely been explored — and the early signs are, there's a lot more than 5 million ounces of gold in the ground.
A Bonanza of Value
The Valentine Gold Mine sits on a known geological formation or fault about 32 km long — of which only a small portion has been drilled and explored.
Recently, Calibre sent down some exploratory drillholes a kilometer from the construction site and known resources.
And those drill results came back showing similar concentrations of gold to the area already defined for the mine!
This suggests the possibility that additional gold will be discovered along the host formation.
Potentially, the kilometer between current drilling and those new exploratory drillholes will share the same concentrations of gold, time will tell.
Indeed — the entire 32 km host formation has limited exploration and the company is investing in property wide exploration this year.
What's more — the company has barely explored at depth yet.
With geological formations of this sort — similar to large, district-scale finds in Quebec — there are often pockets of precious metals along strike and at depth.
The Valentine Gold Mine already has 5 million ounces of gold resources, and it's hard to say if they are priced into the stock yet, given Calibre just closed this deal.
Unlike some junior explorers, Calibre Mining (TSX:CXB, OTC:CXBMF) has a healthy balance sheet and strong cash flow from producing mines, allowing them to self-finance for the foreseeable future.
The company is actively drilling and defining the rest of Valentine's 32 km formation this year, with further results expected during 2024.
Unlike large majors with their huge market caps, a district-scale find for a mid-tier like Calibre has the potential to move prices quickly and drastically.
If you are looking for a play in the red-hot precious metals sector, Calibre Mining (TSX:CXB, OTC:CXBMF) is a company worth consideration.
This is a paid advertisement. Think Ink Marketing and its owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by profiled companies or third parties to organize marketing campaigns, which include the creation and dissemination of these types of communications. In this case, in an effort to enhance public awareness of Calibre Mining Corp.(“CXB”) and its securities, CXB has provided the Publisher with a budget of approximately $7,500.00 USD to cover the costs associated with the creation and distribution of this communication. The Publisher may retain any excess sums after expenses as its compensation. This compensation should be viewed as a major conflict with our ability to be unbiased. Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur. This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on interviews with company management, and does not (to the Publisher’s knowledge, as confirmed by CXB) contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
The above is a paid advertisement. Barchart.com is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Barchart.com does not guarantee or verify any performance claims made by such systems, newsletters or services. Trading involves a significant and substantial risk of loss and may not be suitable for everyone. You should only trade with money you can afford to lose. There is no guarantee that you will profit from your trading activity and it is possible that you may lose all of, or if trading on margin more than, your investment. Some of the results shown may be based on simulated performance.
SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, SUCH RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MY HAVE UNDER OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
Past performance is not necessarily indicative of future performance. This brief statement cannot disclose all the risks and other significant aspects of trading. You should carefully study trading and consider whether such activity is suitable for you in light of your circumstances and financial resources before you trade.
This message is considered by regulation to be a commercial and advertising message. This is a permission-based message. You are receiving this email either because you opted-in to this subscription or because you have a prior existing relationship with Barchart.com or one of its subsidiaries, and previously provided your email address to us. This email fully complies with all laws and regulations. If you do not wish to receive this email, then we apologize for the inconvenience. You can immediately discontinue receiving this email by clicking on the unsubscribe or profile link and you will no longer receive this email. We will immediately redress any complaints you may have. If you have any questions, please send an email with your questions to bcmembers@barchart.com.
Barchart.com
222 S. Riverside Plaza, Suite 810 Chicago, IL 60606
Unsubscribe
No comments:
Post a Comment