G Mining Ventures Corp (TSE: GMIN) (OTCMKTS: GMNIF) (FRA: W97) has crossed the final hurdle on the path to construction and production at its development-stage South America gold mining project.
The mid-tier revealed Dec. 8 that Guyana’s Geology and Mines Commission has granted a 20-year license for Oko West.
Oko West will be an open pit and underground operation. It is slated to produce 350,000 ounces per annum with all-in sustaining costs totalling US$1,123 per ounce. Commercial production is on schedule to commence in 2028 after two years of construction.
The project will cost approximately US$1 billion to construct and develop. It has an after-tax net present value of US$2.2 billion with a 5 per cent discount rate and a 27 per cent internal rate of return, according to an April feasibility study.
Pre-production open pit mining will be starting during next year’s first quarter. G Mining is currently working on procuring the necessary mining equipment and machinery to do so.
Furthermore, G Mining has secured a US$537 million debt financing package for the project and completed 36 per cent of the site’s detailed engineering work. Oko West’s first gold pour is expected to occur in H2 of 2027.
Early construction work will focus on establishing a 425-person camp, constructing access roads and establishing a tailings storage facility.
Read more: NevGold expands high-grade antimony discovery at Nevada’s Limousine Butte Project
G Mining has strong financial position
The mid-tier gold producer has a healthy balance sheet with modest debt totalling US$119.7 million and a low debt-to-equity ratio below 9 per cent. G Mining also has a favourable cash balance of US$94.6 million and solid liquidity with a current ratio of 1.15.
Robust profitability from its Tocantinzinho mine in Brazil enabled G Mining to achieve a 50 per profit margin and 75 per cent EBITDA margin in Q3. Year to date, this mine has produced over 124,000 ounces. It is estimated to have a decade of life remaining.
The high price of gold is continuing to drive record financial results for gold producing companies throughout the globe. It is also providing incentive for gold juniors operating in the Americas, such as NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50).
G Mining’s market cap is sitting at ~US$5 billion, as of the end of Q3.
Read more: NevGold edges closer to gold-antimony resource with latest Limousine Butte results
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