this is from Equity Research July 4th, 2021 page 17
Sonoro Gold: As Building its Mine Gets Closer, Its Shares Move Higher
Ivanhoe’s share price sprint, from less than US $2 in 2020 to almost US $10 a year later, is a classic example of what going into production can do for a company’s share price. We detailed a few months ago how the shares of K92 Mining performed similarly as it began producting gold.
Sonoro Gold Corp (TSX.V: SGO) is in the same sweet spot as Ivanhoe was before it began its share price run. In the next few weeks, It is expected to disclose the economics of its planned mining operation and though its planned mine is considerably smaller, the levitating effect of becoming a cash flowing metals producer on its share price should be no different, especially given that the project’s internal rate of return is apt to be a multiple of the Kamoa Kakula’s and the payback on the Cerro Caliche’s capital costs is likely to be measured in months rather than years. Another more local example of what we may expect in terms of share price performance is Minera Alamos (TSX.V MAI). It has three projects: its flagship, Santana, which has just gone into production and two exploration projects: the Cerro d’Oro, which has to date outlined a 630,000 oz/Au resource averaging 0.41 g/t Au, and the La Fortuna, which has a 300,000 ounce resource averaging around 3.5 g/t Au. Minera Alamos has 462 million shares outstanding fully diluted, so nearly three times Sonoro’s fully diluted number of shares. Mineras Alamos fully diluted market capitalization at $0.70 is CAD $323 million, compared to Sonoro’s current fully diluted CAD $50 million.