Highlights

    • In June 2023, this company closed the acquisition of Anacortes Mining. This company issued C$20M in shares, which we note is just 9% of the AT-NPV5% of Anacortes’ Tres Cruces project in Peru. We consider this transaction an excellent move by this company, as it offers geographical diversification, and significant production growth potential, at a deeply discounted valuation (acquisition price). This company is completing an updated Preliminary Economic Assessment (PEA).
    • Q2-2023 production (from its flagship ATO gold mine in Mongolia) was down 2% QoQ, and 19% lower than our forecast. Cash costs increased 16% QoQ, to $722/oz, but remain below the sector average of $830/oz. Management is projecting gold sales of 25-30 Koz for the full year vs 12 Koz produced in H1-2023.
    • At the end of Q2-2023, this company had approximately 70 Koz of gold in inventory (worth $133M at $1,900/oz) available for processing. Shares are trading at just 47% of this inventory.
    • We maintain a positive outlook on gold prices, as we anticipate persistent Company Data inflation levels higher than the historic average through the end of 2024. 52 Week Range C$0.73 – C$1.36 Additionally, we expect the Fed to keep its benchmark rate steady in the upcoming meeting next month, given the backdrop of rising financial instability.
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