Value Microcaps Junior Miners

[Bobwins]

GCM.to/TPRFF GCM recently changed their name from Gran Colombian Gold to GCM Mining to signify the change from a single mine, single country company to more of a regional player.

GCM is strangely undervalued. Market cap is US$438million. But they have $300 million in CASH AND they are profitable producer of 200K oz of gold every year from their Segovia high grade mine. Their biggest problem is that Segovia is in Colombia.

Last year, GCM bought Gold X to get their Toroparu Gold project in Guyana. This mine has at least 5 million ounces of gold and could ultimately be a 10 million oz mine. GCM has raised all the money necessary to build a mine that will produce 200K of gold for well over a decade. This mine should be in production sometime in 2024 and will double GCM's total gold production to 400K oz. They are already profitable with 9 month earnings of 2.32, including one time items. The Q3 earnings of .26 or US$25million probably is better for short term forecasting. Using estimated $1/share earnings vs the $4.46 share price gets you a p/e ratio of 4+.

In addition to Toroparu, GCM has other short term catalysts. They used to own the Marmato mine in Colombia. They sold most of their interests to Aris Gold and retained a 44% interest in Aris Gold.

Aris has an all star mgmt team that thinks that Marmato has high grade gold at depths and is building an underground mine to exploit the deeper gold. Aris was founded by Neil Woodyer, successful founder of Endeavor and Leagold Mining. He recently sold Leagold to Equinox Gold ane created Aris to repeat his successful track record of creating value for shareholders. The mine should begin construction in 2022 while near term improvements are made to the existing mining at Marmato.

So GCM has two big catalysts coming up in the next 24 months. Their new Toroparu mine in Guyana will provide geographic diversity and long term production while they will received 44% of Aris production from the new deep mine at Marmato.

In addition to their assets, GCM provides shareholders with a 3+% yield on monthly dividends while they wait for the catalysts.

Here is their latest presentation:
https://www.gcm-mining.com/news-and-investors/events-and-presentations/presentations/default.aspx

I think the combination of Toroparu and Marmato will cause GCM to triple over the next couple of years. I think the market is waiting to see if Marmato works out as planned but I think the stock is a no brainer for anyone in mining stocks.