Source: The Critical Investor for The Gold Report 04/09/2017
The Critical Investor profiles Leagold Mining, a company that just took over Goldcorp’s Los Filos mine in Mexico.
Sometimes it happens that an asset can benefit from a new set of eyes looking at it from a different perspective. That is exactly what seems to be happening at the Los Filos mine in Mexico. Goldcorp Inc. (G:TSX; GG:NYSE), the previous operator of this mine, decided to focus on other projects due to its new 20/20/20 strategy (in the next five years achievement of 20% growth in gold production, 20% growth in gold reserves and a 20% reduction in our all-in sustaining costs) put in place by new CEO Garofalo, and put the mine up for sale.
Several parties were interested, but Leagold Mining Corp. (LMC:TSX.V) made the winning bid. Leagold appeared to be a special purpose vehicle: created for the sole purpose to acquire this mine in Mexico’s Guerrero Gold Belt. but it is meant for much more. Looking at the company’s management team, built around well-known founders Neil Woodyer and Frank Giustra, the Los Filos mine is the very first step of Leagold Mining. This company is destined to achieve great accomplishments, and the current valuation of the company is definitely just the beginning.
All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in U.S. dollars, unless stated otherwise.
The company
Leagold just finalized the financing which was completed simultaneously with the acquisition of the Los Filos mine. As the company’s management team is one of the main parts of the investment thesis, I will discuss the executives …read more