We recently caught up with Jose Vizquerra, the CEO and President of Canadian company O3 Mining. In previous interviews, we've gained valuable insights into their operations.

We were keen to hear of O3's progress, with a pre-feasibility study (PFS) expected soon and plans for a feasibility study (FS) to begin in the next 8-months. We also wanted to hear Jose's predictions for the future of gold.    

About O3 Mining and Jose Vizquerra

O3 Mining is a Quebec-based gold explorer and mine developer owned by the Osisko Group. With O3 preparing for production, they benefit from their parent company’s extensive support, mine-building success, and expertise.

They also own multi-million-ounce deposits in Quebec, with Marban and Alpha two projects of significance. The Marban project is targeting production in 2026 with considerable exploration potential. If realised, this potential would increase both company resources and value for shareholders.

Before becoming CEO and President of O3 Mining, Vizquerra was Vice President of Strategic Development for Osisko Mining. He also worked at the Oban Mining Corporation. Here, he played a vital role in forming Osisko Mining from Oban, Corona Gold Corporation, Eagle Hill Exploration Corporation, and Ryan Gold Corporation.

Why Invest in O3 Mining?

We wished to understand from Jose why investors should consider investing in O3 Mining,  given their production plans for 2026. Some investors feel that the extended production timeline provides no value for investment at this stage.

As Jose put it,

"They are absolutely wrong."

He states their goal is to build a mid-tier mining company, not achieve a buy-out. To obtain that goal, they need to go through permitting, and a deliberate series of steps to allow production to begin in 2026.  He emphasises that O3 Mining is not building a company to be later sold but to grow and create value for investors.

Jose accepts he needs to convince investors by assisting them in understanding the growth story of a developing mining company. Yet, he is adamant that O3 Mining's owned resources permit a minimal risk investment with considerable upside. While currently a junior miner, Jose cautions they won't stay that way for long.  He and his team are building a mid-tier mining company, and he says,

"What we are proposing here is a growth in fundamental value. It's as simple as that."  

Where Is Gold Headed?

Gold has been trading in a range between approximately $1,850 and $1,700 per ounce. With gold equities performing below average, we asked Jose to predict gold’s future.

He believes that long term predictions are positive, with gold prices set to increase. There are three reasons for his optimism. The first is large banks currently asking family offices for their position in gold, something that hasn't occurred for five years.  

He also points to the increased popularity of cryptocurrency.  Jose understands that some might argue cryptocurrencies are taking the place of gold as an inflation hedge. Yet, he believes crypto is a leading indicator, with gold's price likely to follow the cryptocurrency surges.

Vizquerra also believes that the economic recovery in China and India heralds a rally in base metals.  Copper prices have already rocketed away, and he remains convinced gold will follow. As he puts it,

"I believe that in the next couple of months, we will see a gold rally."

If it doesn't, he emphasises O3 Mining is poised to adapt to the changed circumstance. If the price decreases, they're able to shrink their budgets to maintain value.  

On equities, Jose is sure they'll rally too, but the fundamental values of the companies will determine if they're a good investment in the long run. Jose echoes the words of Warren Buffer when he says,

"Just buy the fundamental values of the company, and eventually, you get paid. You just have to be patient."

The Bottom Line

Jose Vizquerra is adamant that investors should base their decisions on the inherent fundamental value of his company. Current valuations place O3 Mining at $150 million, with sunk costs of $100 million and cash reserves of $140 million.

He claims that even with their owned resources heavily discounted, the Marban project alone provides a 20% IRR. Combine Alpha, Bulldog, Garrison, and Moneta Porcupine resources, and Jose believes the fundamental value proposition of O3 Mining is irrefutable.

I'll leave the last words to Jose.

"You like high-grade, ... we have high-grade, you like low-grade, we have low-grade. You want fundamental value; we have fundamental value. Do we need cash? We don't need cash. What we need is the support of the market to help us to get our investors to understand that we have a great project here."
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