Connect with us

Articles

This Microcap With Gold-Silver Assets Is a Buy

Source: Streetwise Reports   11/18/2021

Microcap gold stocks offer investors exposure to gold’s upside in an inflationary environment while…

Published

on

This article was originally published by Streetwise Reports

Source: Streetwise Reports   11/18/2021

Microcap gold stocks offer investors exposure to gold’s upside in an inflationary environment while providing a bit of fun as your position rides the waves of investor confidence. An expert analyst has made Inomin Mines Inc.[/SHORT_CODE] his latest pick. As long as you can stomach the risk, the ride could pay off with much more than what you put into it.

With inflation settling in for at least the foreseeable future, perhaps you’re looking to expose your portfolio to gold’s inevitable upside in an inflationary environment. There are lots of ways to do that: gold ETFs, mutual funds, major and mid-tier gold producers, even physical gold. But none of those options offer investors the fun factor—and some of that fun, admittedly, goes hand in hand with the risk—of microcap gold stocks.

But if that microcap has decent fundamentals attractive projects, proven management, and enough news flow to keep retail investors interested, then the risk becomes more manageable and the fun factor increases considerably, especially the potential for extraordinary capital appreciation.

If you’re seeking that kind of fun, at about $0.10 per share, Inomin Mines Inc.[/SHORT_CODE] (MINE:TSX.V; IMC:FRA) may be worth a look.

Founder and editor of Struthers’ Resource Stock Report , Ron Struthers just issued a new buy recommendation for Inomin.

This plucky microcap has no less than three projects with considerable potential to delineate substantial resources: the advanced-stage La Gitana gold-silver project in Oaxaca State, Mexico; the nearby Pena Blanca gold-silver project; and the Beaver–Lynx nickel-cobalt property in British Columbia.  

Nickel-cobalt? What?

Hold your horses.

Beaver and Lynx are the first considerable properties that Inomin brought into the fold. These two properties (recently merged into one large 20,000 hectare property) are in south-central B.C., an established mining jurisdiction with paved roads and plenty of super-clean hydroelectricity.

One drill hole by a previous operator hit an interval of 21.2 meters running 0.28% nickel and 0.012% cobalt at about 40 ft. below surface. Another hole intersected a long 107 meter interval grading 0.18% nickel and 0.01% cobalt.  All 25 drill holes hit relatively consistent grades at shallow depths, meaning the deposits could one day be mined via open pit methods — if the economics add up.

And the acquisition cost was, well, cheap.

How cheap?

“Basically, the cost of staking, which is minimal,” explains John Gomez, president and CEO of Inomin.  “I wanted to get both properties because I desired exposure to the battery metals sectors.”

Yes, battery metals. The only kind of mined commodities that COP26 delegates get excited about. Nickel use in electric vehicle batteries currently represents about 4% of the nickel market, but that is expected to grow to 31% by 2026.

The global shift to electric vehicles and decarbonisation means the world will need a lot more nickel. BHP expects nickel demand to surge four-fold in the next 30 years. Source: https://www.reuters.com/business/sustainable-business/global-need-copper-nickel-will-multiply-over-next-30-years-bhp-2021-11-17/

Gomez believes the sulphide nature of the nickel mineralization found at Beaver and Lynx will garner more interest from potential partners given that sulphide nickel, also known as Class 1 nickel, is the preferred type of nickel for lithium-ion batteries. He’s already signed confidentiality agreements with multiple parties.

“I’ve had discussions with a few groups over the past six months. A lot of people are watching what we’re doing and have expressed an interest. They want to see us advance the project,” Gomez says. “Everywhere the previous operator drilled at Beaver property they found nickel with cobalt.”

Inomin has been drill testing a considerable 6 km long area at Beaver to determine the extent of nickel-cobalt mineralization on the eastern side of the property. In a Nov. 15 news release, Inomin announced the intersection of long intervals of favorable mineralization that ranged up to 190 meters in thickness.

 

With these favorable results, Inomin could bring in a partner to help fund further exploration and development, or spin its nickel-cobalt assets into a new company.

 

“We’re open to both options, obviously. Both scenarios would be good for our company and our shareholders,” Gomez says.

 

The next step is to evaluate the drill results, samples of which have already been sent for testing. Results are currently pending.

 

Inomin has yet to drill at Lynx, which is about 10 km south of Beaver. This sizable area – roughly 12,000 hectares – is geologically similar to Beaver with multiple, large 2  to 3 km long nickel targets.

 

But what about the gold? Glad you finally asked.

 

La Gitana is a low-sulphidation gold-silver epithermal system. Thirty-eight holes were drilled into the Cerro Di Oro target at La Gitana by its previous owners, Chesapeake Gold (CKG:TSX.V) and Goldcorp [since consumed by Newmont (NEM:NYSE; NMC:TSX)]. Drilling outlined a mineralized zone about 500 meters long by 300 meters wide, with depths ranging from 50 to 300 meters.

 

The best drill intercept was an impressive 133.5 meters grading 1.78 grams per tonne gold and 100.7 grams per tonne silver (1.78 g/t gold and 100.7 g/t silver). Mineralization remains open along strike, laterally, and at depth.

 

What’s more, La Gitana is not far from Gold Resource’s (GORO:NYSE) Arista and Mirador gold-silver mines, as well as Fortuna Silver Mines[/SHORT_CODE]’ (FSM:NYSE) San Jose gold-silver mine. All three mines are situated in the prolific Oaxaca gold-silver belt.  

 

“I have relationships with certain key individuals of both companies,” Gomez tells Streetwise. “Both of those companies are aware of what we’re doing, and they’re very interested in our projects.”

 

A technical report filed on La Gitana reads: “Using the existing information and results of the core drilling carried out in the Cerro Di Oro zone by Chesapeake Gold Corp.[/SHORT_CODE], it is recommended to initiate a resource estimation.” Inomin plans to compile a resource estimate on La Gitana once it finishes a drill program. The resource should be published by the end of next year.

 

Pena Blanca, meanwhile, is situated about 15 km northwest of La Gitana. It’s an epithermal gold-silver system discovered by Chesapeake in 2005. Chesapeake mapped and sampled only about 1 sq. km of the large 9 sq. km of hydrothermal alteration at Pena Blanca, with some promising results.

 

Trenching from an outcrop on the NW zone includes 23.5 meters of 2.26 g/t gold and 178 g/t silver.

 

Inomin acquired its 100% interest in La Gitana and Pena Blanca from Gunpoint Exploration[/SHORT_CODE] (GUN:TSX.V) in exchange for 1 million shares, $25,000 cash, and a 1.5% net smelter return royalty (NSR) payable to Gunpoint on Pena Blanca. Inomin assumed an existing 3% NSR on La Gitana.

 

Inomin’s board is strong for a company with a $3M market cap. Gomez started a gold company in Colombia and has been involved with a few publicly listed juniors, including Fjordland Exploration[/SHORT_CODE], and earlier Mar-West Resources that discovered a gold deposit in Honduras and was subsequently acquired by a major gold company.

 

Directors John Peters and Bill Yeomans are both geologists who have spent more than 30 years working on gold projects throughout the world, while the junior’s advisory panel consists of veteran geologists Victor Jaramillo and Bruce Winfield. Management and insiders own about 18% of the company.

 

Inomin recently raised $400,000 in a non-brokered private placement of roughly 5.3 million shares at 7.5¢ each. It has enough cash to complete its current exploration work.

 

The junior has about 41 million shares outstanding fully diluted and trades in a 52-week range of $0.06 to $0.23.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

DISCLOSURES

1) Brian Sylvester compiled this article for Streetwise Reports LLC and provides services to

Streetwise Reports as an independent contractor. He or members of his household own

securities of the following companies mentioned in the article: None. He and members of his

household are paid by the following companies mentioned in this article: None. His company

has a financial relationship with the following companies referred to in this article: None

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Inomin Mines Inc.[/SHORT_CODE] Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 

Cover photo: Lynx nickel project in British Columbia. (Image courtesy of Inomin Mines).

( Companies Mentioned: MINE:TSX.V; IMC:FRA,
)







Author: Author

Articles

Best Mining Penny Stocks to Buy Right Now? 3 To Look at This Month

Will these mining stocks make your watchlist? When discussing mining penny stocks,…
The post Best Mining Penny Stocks to Buy Right Now? 3 To Look at…

Will these mining stocks make your watchlist?

When discussing mining penny stocks, it is difficult not to highlight how well they have performed over the last year and a half. It all started with the pandemic, which pushed precious commodities like gold and silver to new highs. As a result, more types of mining equities began to perform better. There are far more of these assets than many investors think.

Many people think of gold and silver stocks when they think about mining assets. In reality, there are numerous different types of mining stocks. Companies in this category include those that look for copper, steel, uranium, lithium, lead, and other minerals. Bitcoin mining stocks, for example, can be considered for this type of asset.

What should you look for when investing in mining penny stocks, you may be wondering? There are a few critical actions that may be taken to ensure that the moment is perfect to invest in a company. The first and most obvious step is to read the news from across the world. Consider how the pandemic affected and continues to affect the mining industry. Sector news is also critical; for example, shortages and growing demand are useful pieces of information to have. Let’s look at three mining stocks performing well in December 2021.

Top Mining Stocks To Watch

Denison Mines Corp. (NYSE: DNN)

Denison Mines Corp. is a mining penny stock that just gained 2% on December 2nd. This is a mining business that is engaged in uranium development. The development business owns a 95 percent share in the Wheeler uranium project, which is located in the Athabasca Basin of northern Saskatchewan. This is a mining stock that has previously gotten a lot of attention on this site due to its consistent upward market momentum.

The corporation announced the adoption of an Indigenous Peoples Policy, or IPP, on December 2nd. The Board of Directors endorsed this, which indicates the company’s acknowledgment of the critical role of Canadian business in reconciling with Indigenous peoples in the country. This is consistent with Denison’s pledge to take action to advance reconciliation. This was critical for the corporation because it operates in several areas across Canada that are on Indigenous peoples’ traditional territory.

President and CEO of Denison, David Cates said, “I believe Industry has an important role to play in acknowledging, and building awareness of, the history of Indigenous people in Canada and the critical importance of pursuing the objectives of reconciliation. As such, the adoption of an Indigenous Peoples Policy is a notable step in our Company’s journey to bring reconciliation to the forefront of what we do and how we do it.” DNN stock has increased in value during the last six months. Will DNN stock be added to your watchlist as a result of its recent advancements?

IAMGOLD Corporation (NYSE: IAG)

IAMGOLD Corporation is a gold mining company that has seen its stock price rise in the previous 30 days. This firm looks for, develops, and manages land for the sale of gold in a variety of countries. IAMGOLD is a global company with operations in North America, South America, and West Africa. These territories are home to the Westwood mine, the Boto gold project, and a slew of other ventures.

IAMGOLD released their third-quarter results for 2021 on November 3rd. The firm released its third-quarter results for 2021 on November 3rd. IAMGOLD generated $121.6 million in mine-site free cash flow, while adjusted EBTIDA was $265.7 million. During the same time period, IAMGOLD reported a total net loss of $20.1 million, or $0.04 per share. Despite certain flaws in its financial results, IAMGOLD has had several moments of strong performance this year.

CEO and President of IAMGOLD, Gordon Stothart said, “The third quarter of 2021 saw improvement in our operating performance supported by the continued strong results at Essakane. Rosebel performed in line with the revised plan. Construction activities at Côté continue to proceed well, reaching 36% project completion at quarter-end.” Is IAG on your list of mining penny stocks to watch right now?

New Gold Inc. (NYSE: NGD)

We’ve previously identified New Gold Inc. as a mining penny stock with a lot of momentum on multiple occasions. This firm develops and manages a number of mineral properties throughout North America. The Rainy River gold-silver mine, which it controls 100 percent of, is one of its most important assets. The Rainy River mine is located in the Canadian province of Ontario. In addition, the corporation owns a 100% stake in the New Afton gold-copper mine. This mine is in the Canadian province of British Columbia.

On October 13th, the company revealed its third-quarter operational results. New Gold produced a total of 105,628 gold equivalent ounces throughout this time. Rainy River and New Afton mines yielded 60,785 and 44,843 gold equivalent ounces, respectively. Due to fewer tons milled, its gold equivalent production dropped in the third quarter.

President and CEO of New Gold, Renaud Adams said, “We remain on track to deliver on our updated guidance, and we continue to make progress towards securing the Company’s future growth at both assets. Our liquidity position improved for a third consecutive quarter, and I continue to expect meaningful free cash flow generation from our operations in the near-term” Amid these new developments, will NGD be on your mining penny stock watchlist?

Top Mining Penny Stocks To Buy?

Penny stocks are infamous for being extremely volatile and unpredictable. As a result, it is suggested that you concentrate on studying and investing carefully. No one knows what will happen to mining stocks in the market as long as inflation fears persist. As we approach 2022, only time will tell what happens to mining penny stocks. For the time being, which companies will you add to your watchlist?

The post Best Mining Penny Stocks to Buy Right Now? 3 To Look at This Month appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.








iamgold corporation

Author: Jon Phillip

Continue Reading

Economics

7 Stocks to Buy If the Government Shuts Down in February 2022

Since Wall Street’s opening bell sounded on the day after Thanksgiving, clouds of uncertainty have hung over U.S. markets. Reports of what would soon…

Since Wall Street’s opening bell sounded on the day after Thanksgiving, clouds of uncertainty have hung over U.S. markets. Reports of what would soon be dubbed the omicron variant were quick to send shock waves across certain sectors. And since then, more news has risen from Capitol Hill that has proved unsettling for investors. Bipartisan bickering has led to increasing discussion of a government shutdown.

Fortunately, Democratic lawmakers managed to avert the shutdown just before a key Dec. 3 deadline, securing funding through February 2022. This represents only a temporary solution to a larger problem, though, leaving investors with pressing questions. What could a government shutdown mean for markets?

If you’re wondering what stocks to buy as the next funding, you’re not alone.
While we don’t know for sure what the immediate future will look like, if it does include a government shutdown, either partial or complete, it likely won’t be all bad news for investors. On the contrary, there are some industries that stand to benefit. Let’s take a look at some stocks to buy if a shutdown does occur.

  • Procter & Gamble (NYSE:PG)
  • Campbell Soup (NYSE:CPB)
  • Archer-Daniels-Midland (NYSE:ADM)
  • Coca-Cola (NYSE:KO)
  • Colgate-Palmolive (NYSE:CL)
  • Altria Group (NUSE:MO)
  • Newmont (NYSE:NEM)

Stocks to Buy for a Government Shut Down: Procter & Gamble (PG)

Source: Jonathan Weiss / Shutterstock.com

As you can probably tell from the names on this list, the consumer staples sector is likely to benefit the most from a shutdown. No company produces more household items than Procter & Gamble. Its holdings are truly vast, spanning healthcare, home care, and baby and feminine care, to name just a few. And in each area, P&G has secured a significant market share.

Government shutdowns tend to induce strong feelings of uncertainty, compelling consumers to stock up on the items they don’t want to be without if things take a turn for the worst. During the shutdown of 2018, many government agency workers found themselves working without pay or with wages in furlough. They remember that feeling well and if a shutdown comes again, they don’t want to be ill-prepared.

We also know that during periods of uncertainty, nervous Americans tend to over-prepare by over-shopping. The kind of products they need are distributed by large companies, and Procter & Gamble controls many of the country’s most trusted brands.

PG stock has also been touted for its resistance to the inflationary trends that are also affecting consumer habits. If you’re looking for stocks to buy in preparation for a shutdown, there’s no better bet than this consumer staples giant.

Campbell Soup Company (CPB)

a grocery store aisle stocked with cans and cans of Campbell's SoupSource: HeinzTeh / Shutterstock.com

If Americans are going to be stocking up on essentials, they’ll be employing the same practice when it comes to food. And when it comes to stockpiling non-perishable food items, there’s no better bet than Campbell Soup.

The iconic brand is sold everywhere, from big-box markets to dollar stores, and it keeps for months upon months. Additionally, we’re heading into the coldest season and as temperatures drop, the need for warm items such as hearty soups will only mount. InvestorPlace contributor Joel Baglole named CPB as  stock to buy the next time a national event gives Americans apocalyptic anxieties. As he stated, “When people think of stockpiling food supplies, they turn to soup. It’s hearty, comforting, makes for a great lunch, and has a shelf life that can outdo most other canned goods.”

Sales are likely to increase as the company heads into a winter marked by multiple events that could easily have Americans stocking up on food items. CPB stock should definitely be high on your list of stocks to buy for a shutdown, particularly as it’s been struggling lately, creating what could become a lucrative opportunity to buy the dip if such trends continue.

Stocks to Buy for a Government Shutdown: Archer-Daniels-Midland (ADM)

Archer-Daniels-Midland (ADM) logo on sign at office campusSource: Katherine Welles / Shutterstock.com

The company commonly referred to by its initials is known as a staple of food production and distribution. With a reach that extends far beyond that, though, it’s also a leader in the global field of agricultural processing. Throughout years of fairly steady growth, the company has worked to emphasize practices that center around health and sustainability. ADM doesn’t own farms, but it partners with them by supplying innovative technologies to help spur the growth and distribution of agricultural products.

It doesn’t stop with agricultural services, though. The company’s work spans areas including oilseeds and carbohydrate solutions as well as animal nutrition ingredients. Moreover, if it involves food and will be in demand as America faces a daunting economic outlook, ADM will be helping provide it.

It’s worth noting that while many consumers will absolutely be stocking up on items like Campbell soups, their more health-conscious peers will be more focused on the food items provided by companies like Archer-Daniels-Midland. ADM was recently named to a list of consumer staple stocks to buy for reasons even more pronounced today.

Coca-Cola Company (KO)

coca-cola (KO) bottles and cans. coke is a blue-chip stocksSource: Fotazdymak / Shutterstock.com

There’s likely no brand more iconically American than Coca-Cola. Even non-soda drinkers have sampled some product owned by the massive soft drink conglomerate whose holdings are also quite vast, encompassing brands such as Dasani Waters, Honest Tea and Minute Maid Beverages.

If nervous Americans are stocking up on food, they’ll also have to stock up on beverages and there is no beverage company better-known than Coca-Cola. Not all Americans drink the soda for which the company is named, but their beverage of choice is likely made by one of the company’s subsidiaries. With this type of empire, KO is a safe investment as the country prepares for a period of uncertainty.

Even in the face of inflation, KO stock appears to be standing its ground. As it turns out, there is plenty of reason, as the stock is touted for its inflation-proof qualities. As InvestorPlace contributor Alex Sirois noted in a recent list on exactly that topic, “the general thesis is that consumer goods bear the brunt of inflation.” KO stock should definitely should not be counted out of lists of stocks to buy in the face of a government shutdown.

Stocks to Buy for a Government Shutdown: Colgate-Palmolive (CL)

Image of the Colgate-Palmolive logo on a buildingSource: Shutterstock

It isn’t just food and beverages that Americans will be stocking up on if the shutdown proceeds, though. You probably associate the name with products such as toothpaste, but the multi-national corporation under which Colgate operates produces and distributes toothbrushes, mouthwashes, and rinses for both adults and children. It also produces products of general hygiene needs for both humans and animals. For anyone concerned with dental wellness or just general hygiene, Colgate’s products are essential, and they will be of paramount importance in a time of economic uncertainty. If you keep it next to your bathroom sink, Colgate-Palmolive probably made it.

Earlier this year, InvestorPlace contributor Josh Enomoto named CL among recession-resistant stocks to buy for nervous investors. “A recession would have to be pretty darn awful for people to skimp out on the bare necessities,” he noted.

While we’re not facing a recession just yet, it seems a safe assumption that Colgate-Palmolive will be a company that only sees business increases as nervous Americans prepare for the worst. The last government shutdown we saw led to considerable economic instability and plenty of anxiety among consumers. This time around, Americans will want to be prepared and shopping helps the nervous feel better, particularly for the type of essentials that Colgate-Palmolive provides.

Altria Group (MO)

a sign with the Altria (MO) logoSource: Kristi Blokhin / Shutterstock.com

We’ve discussed the essentials quite a bit throughout this list, but we all know that nervous Americans won’t just be buying what’s good for them. They’ll be stocking up on things that help them feel better, such as alcohol and cigarettes. Tobacco companies stand to benefit from an economic period where stress will be high. This giant of its sector owns several of the biggest names in big tobacco including PhilipMorrisUSA. It’s also worth noting that Altria has been exploring expansions into the fast-growing cannabis market. In 2018, it made a strategic investment in Canadian cannabis producer Cronos Group (NASDAQ:CRON) and explored further investments more recently.

As InvestorPlace contributor Chris Lau noted, “Some investors view tobacco as an unattractive investment. But people who smoke still need to buy the company’s products. Plus, Altria has a discount segment that is growing. It is careful not to gouge price-sensitive customers, especially its premium brands.”

Anyone seeking to capitalize on the increase in cigarette sales that the country could see would be well served to consider MO among shutdown stocks to buy.

Stocks to Buy for a Government Shutdown: Newmont (NEM)

Newmont (NEM) logo on a mobile phone screenSource: Piotr Swat/Shutterstock

While this name may seem like an odd choice for a list that primarily includes consumer staples stocks, it’s also worthwhile to consider a worst-case scenario play, examining the type of stock that stands to benefit if a shutdown is prolonged or leads to a worse economic landscape in which fears are amplified significantly.

If we start approaching that type of scenario, we’re likely to see companies with heavy ties to gold mining start to benefit as Americans seek the safest ways to store their money and protect their assets. As the country’s largest gold mining company, Newmont is worth a look if you’re seeking stocks to buy. The company’s mines can be found in the American west, but its mining reach has expanded to countries such as the Dominican Republic, Ghana and Australia.

We recently saw a rally in gold prices following the inflationary trends that came to define the late fall. While prices have fallen since then, fears are now rising for other reasons and if they continue to worsen, gold mining companies will be standing at the ready.

For anyone interested in stocks to buy for a time marked by panic and uncertainty, this could be a good time for a bullish play on gold mining.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

The post 7 Stocks to Buy If the Government Shuts Down in February 2022 appeared first on InvestorPlace.








Author: Samuel O'Brient

Continue Reading

Articles

BMO Resumes Coverage On MAG Silver Following US$46.0 Million Financing

On November 29, MAG Silver (TSX: MAG) closed their US$46 million offering wherein the company issued 2.69 million shares, which
The post BMO Resumes Coverage…

On November 29, MAG Silver (TSX: MAG) closed their US$46 million offering wherein the company issued 2.69 million shares, which included 15,700 shares to MAG insiders at US$17.15 per share. The company stated that they intend to use the proceeds of the offering, “to fund exploration on Juanicipio and its other projects including Deer Trail, and to fund certain sustaining capital requirements at the Juanicipio Project not included in the initial project capital estimates, and for working capital and general corporate purposes.”

MAG Silver currently has 10 analysts covering the stock with an average 12-month price target of C$28.83, or a 39% upside to the current stock price. Out of the 10 analysts, 7 have buy ratings and the other 3 have hold ratings. The street high sits at C$33.82 from Roth Capital while the lowest comes in at C$24.75.

On the 29th, BMO Capital Markets resumed their coverage on MAG Silver, reiterating their C$25 12-month price target and market perform rating. BMO says that this raise will help fund exploration and get Juanicipio across the finish line.

Additionally, it will help keep the companies cash balance strong. The company ended the third quarter with US$31.7 million. With this additional US$40 million on hand, they expect the company to make a $30 million capital contribution to their joint venture sometime in December. That will top the joint venture up to US$68 million in cash and MAG with roughly $34 million in cash, plus the cash flow from the business. They believe that MAG Silver will end out 2021 with US$44 million in cash.

BMO has updated their net asset value but believes the raise has only a modest impact since the increase in shares is roughly 3% with the overallotment, bringing the total shares outstanding to 97.8 million. This brings their NAV assumption to US$10.29 from US$10.19 prior.

Lastly, BMO says that the company is getting close to Juanicipio ramping up. The company noted that the plant is expected to come in on budget and expected to be completed by year-end.

Below you can see BMO’s full year 2022 assumptions.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post BMO Resumes Coverage On MAG Silver Following US$46.0 Million Financing appeared first on the deep dive.


Author: Justin Young

Continue Reading

Trending