Newmont (NEM) has been giving away many of their best gold assets for a fraction of their real value.
On January 25th, Discovery Silver (TSX: DSV) announced it is acquiring the Porcupine Gold Complex from Newmont (NEM). Since then, DSV has gained by 96.94%.
On December 6th, SSR Mining (SSRM) announced it is acquiring the Cripple Creek & Victor Gold Mine from Newmont (NEM). Since then, SSRM has gained by 62.73%.
On November 18th, Orla Mining (ORLA) announced it is acquiring the Musselwhite Gold Mine from Newmont (NEM). Since then, ORLA has gained by 91.37%.
Borealis Mining (TSXV: BOGO) is in the process of acquiring the former Newmont owned Sandman Gold Project, which was one of three properties Newmont purchased in their $2.3 billion acquisition of Fronteer Gold in 2011. Newmont was already doing all of the work at Sandman prior to acquiring Fronteer Gold! Click here to read a 2010 press release about some of the high-grade gold intercepts Newmont was discovering at Sandman!
A 2023 PEA for Sandman showed the following leverage to rising gold prices:
Table 2: Sensitivity Study Results from 2023 PEA
| Gold Price (USD) | NPV@6% (after-tax) | IRR (after-tax) | |
| $1,600 | $70.5M | 55.1% | |
| $1,800 | $121.0M | 80.9% | |
| $2,000 | $171.5M | 104.7% | |
| $2,200 | $222.0M | 127.6% | |
| $2,400 | $272.6M | 149.9% | |
| $2,600 | $323.1M | 171.9% | |
| $2,800 | $373.6M | 193.6% | |
| $3,000 | $424.1M | 215.2% | |
Now do you understand why Eric Sprott and Rob McEwen are buying so many BOGO shares?
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from BOGO of US$100,000 cash for a twelve-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
