Augusta Gold (TSX: G)'s Bullfrog Gold Project is not going to produce 200,000 oz of gold per year like when Barrick (GOLD) owned/operated the mine throughout the 1990s because G is not going to do any underground mining, G is only going to do low-cost open pit heap leach mining. Therefore, G's Bullfrog is likely to only produce 100,000 oz of gold per year but combined with G's Reward Gold Project that will enter development later this year... we expect G's total gold production from the two projects combined to be 135,000 oz of gold per year. Therefore, G at current gold prices will likely generate annual revenue of CAD$320 million and be extremely profitable and cash flow positive due to the low production costs of Bullfrog and Reward. It won't be unreasonable for G to trade for 5X revenue with a CAD$1.6 billion market cap.
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. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 169,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
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