Replies to post #26916 on Value Microcaps Junior Miners

[dr_airtime]

MMY.V - not bad buy for 40k Au oz/year producer with 70M MC.

I own BZA.TO and GGN.TO who are in ramp-up to 40k Au oz/year levels with non-FD MCs of 50M and 98M respectivly, so obviously more risk.

OCO.V is a super under-the-radar NT producer with sub 15M MC that will produce at 40k/year range in year 1. They are trying to do a gold loan for $18M of $21M in CAPEX that should be announced soon. Mineralization is simple so they are going into heap-leach production from PEA so they will have to demonstrate production to get any decent valuation. Post-gold loan, post tax (assume 30%), undiscounted LOM cash flows using the PEA mine plan are at least 6X current MC at $1600 Au and should be 8X current MC at $2000 Au when they go into production perhaps in Q4. No position yet, waiting on gold loan announcement. Management is a Teck (resources/cominco) alumni team. Bonus is you also get the last undrilled major surface anomoly in the GGB (Newstrike [NES.V], Los Filos (Goldcorp), Morelos (Torex)) and OCO.V board chair is also on Newstrike board so you have one degree of seperation from best GGB exploration team @ Newstrike. There was a colonial-era u/g gold mine on OCO.V's GGB property so there is gold. This is just a sweetener.

I seem to be following those 40k au oz/year NT producers currently. OCO.V can be in production in 6 months following the gold loan, so nearer term opportunity that Auriga (AIA.V) - yet again another 40k oz/year producer.

Those are my MMY.V comparables.