G Mining Offers Large-Scale Leverage to Gold Prices

• G Mining Ventures is constructing the Tocantinzinho Gold Project in Brazil, set to become the country's third-largest gold mine within a year.
• As of June, 36% of the project is completed, with over two million hours logged safely and within budget.
• The company aims for a production rate of 175,000 ounces per annum with an ASIC below $700, indicating potential high profitability.
• The company is focused on construction and also exploring M&A opportunities, aiming to hit a 500,000-ounce production mark in the next 3-5 years.

Ramping Up to 175,000 Ounces Per Year Production Within 12 Months

G Mining Ventures is advancing construction on the Tocantinzinho Gold Project in Brazil with the aim of reaching commercial production of 175,000 ounces of gold per year by mid-2023. The company has made significant progress on construction over the past 2 years and is now 36% complete overall. With major milestones on the horizon like tailings dam construction, grid connection, and mill fabrication, G Mining is on track to become one of the only new gold mines coming online globally at scale in the next year.

For investors, G Mining offers a unique opportunity to get exposure to a large, fully-funded gold project set to start generating significant cash flow within 12 months. The company's experienced management team has a proven track record of success in permitting, financing, building, and operating mines in South America. G Mining is poised to re-rate as it derisks construction and approaches commercial production at Tocantinzinho. With plans to grow through acquisitions to the 500,000 ounce production level, the company also provides investors with future upside potential.

De-Risking Construction & Nearing Completion

Since acquiring the permitted Tocantinzinho project in 2020, G Mining has made rapid progress in advancing the gold mine's construction in Brazil. After just 2 years, the project is now over one-third complete with over 2 million work hours logged, safely and on budget. Major components underway include mine pre-stripping, transmission line installation, plant construction, and tailings facility construction.

On the critical path is the delivery of the grinding mills, which are on schedule for completion in August 2022. With plant commissioning activities slated for early 2023, G Mining remains on track for commercial production in mid-2023. Continued successful execution of construction milestones will help further de-risk the project and build investor confidence as the company approaches production.

Fully Financed to ProductionAn important aspect of G Mining's investment case is that the Tocantinzinho project is already fully financed for commercial production. The company completed its full financing package in 2021, including a $200 million precious metals stream with Franco-Nevada and a $75 million term loan. G Mining still has additional capacity on the stream and loan, along with a working capital allocation to cover the remaining construction capex.

This positions the company well to steer clear of dilutive financings or project delays. G Mining can remain focused on efficient project execution rather than fundraising or cost overruns. With Brazil's inflation coming down and interest rates still high, the company is also benefiting from being able to earn 13% interest income on unspent capital. Overall, the financing provides a helpful buffer and flexibility through this final leg of construction.

Major Cash Flow Generation Ahead

Once Tocantinzinho reaches commercial production in mid-2023, G Mining will transition from construction capital outflows to gold production inflows. With annual output estimated at 175,000 ounces and AISC under $700/oz, the mine is set to generate robust margins and free cash flow at current gold prices above $1,700/oz.

Assuming a conservative $300 million in annual revenue at a $1,700/oz gold price, Tocantinzinho could produce around $100 million in free cash flow per year. This significant and growing cash flow profile makes G Mining attractive for investors seeking gold leverage. It also gives the company substantial capacity for growth initiatives and shareholder returns down the road.

Experienced Builders & OperatorsAn experienced leadership team gives investors confidence that G Mining can successfully steer Tocantinzinho into production on time and on budget. CEO Louis Doyle has decades of experience permitting, financing, constructing, and operating mines across the Americas. The broader management team and board also contribute significant building and operating expertise from companies like Newmont, Barrick, and Yamana Gold.

This level of talent and expertise reduces execution risk substantially for investors. G Mining's rapid advancement of Tocantinzinho thus far also demonstrates the team's capability to deliver large projects efficiently. The company's strong construction progress, safety record, and cost control give credibility that management will achieve the first gold pour in mid-2023 as planned.

Growth Strategy Through Accretive M&A

Beyond Tocantinzinho, G Mining aims to grow through accretive mergers and acquisitions in the Americas. The goal is to reach 500,000 ounces of annual production within 3-5 years through acquiring 1-2 additional 150,000-200,000 ounce assets. This clear growth strategy gives investors upside potential beyond the initial 175,000 ounce flagship mine.

The company's strong insider ownership and focus on maximizing shareholder returns means potential M&A will be disciplined and focused on accretion, rather than empire-building. Management also intends to fund growth through cash flow rather than dilution, which will help accelerate per-share value creation. Overall, G Mining's M&A growth plans align well with generating substantial upside for investors.

Major Gold Project in a Favorable Mining Jurisdiction

Brazil offers several advantages as a mining investment jurisdiction that benefit G Mining. The country has an established mining culture with a deep talent pool of technical expertise in geology, engineering, construction, and operations. Brazil also has generally favorable permitting policies towards responsible mining investment and development.

While some countries have growing resource nationalism and hostility towards mining, Brazil remains open and welcoming. For gold mining specifically, Brazil offers solid infrastructure, hydroelectric power, a skilled workforce, and other key supports. Investing in a major Brazilian gold project like Tocantinzinho helps mitigate jurisdictional risk relative to many mining destinations.

Undervalued with Near-Term Re-Rating Potential

With a current market capitalization around $250 million, G Mining trades at a significant discount relative to the NPV of Tocantinzinho and its upcoming production profile. As the company hits key construction milestones in the coming quarters and gold pour approaches, the stock offers re-rating potential toward a more appropriate valuation.

Trading at only about 1x NPV at $1,500/oz gold, G Mining has room to expand toward a more typical 2-3x NPV multiple for a producing gold miner. Commercial production in mid-2023 makes the company a timely re-rating play on advancing Tocantinzinho toward cash-flowing gold production. For investors with a 12-24 month time horizon, G Mining offers an attractive opportunity to position for value realization as execution risk diminishes.

ConclusionWith Tocantinzinho set to become Brazil's 3rd largest gold mine at 175,000 ounces per year, G Mining Ventures presents a compelling investment case. The project is fully funded, construction is on schedule, and management has the experience to successfully reach production. As G Mining further de-risks construction over the coming year, shareholders could see a significant upside from re-rating toward a justified valuation. The company also provides investors with long-term growth potential through a clear M&A strategy. For exposure to a large, high-margin gold project run by experienced builders and operators, G Mining Ventures warrants consideration.

The Investment Thesis for G Mining

• Near-term producer: G Mining is on track to reach commercial production of 175,000 ounces of gold per year by mid-2023. As an emerging producer, the company offers leverage to gold prices as it transitions into generating cash flow.
• Significant production scale: At 175,000 ounces annually, Tocantinzinho will be one of the largest new gold mines globally. This sizable production platform provides exposure to material cash flow generation.
• High-margin asset: With projected all-in sustaining costs under $700/oz, Tocantinzinho is set to produce gold at low costs and robust margins at current gold prices.
• Fully funded: With construction financing in place, G Mining avoids dilution or delays in reaching production. The balance sheet is ready to support efficient execution.
• Experienced team: Management has a proven track record of successfully permitting, financing, building and operating mines in the Americas. This reduces execution risk.
• Growth potential: G Mining aims to reach 500,000 oz annual production within 3-5 years through accretive M&A using cash flow. This provides investors with future upside.
• Re-rating potential: As de-risking milestones are met, G Mining offers attractive re-rating potential as it moves toward production and cash flow generation.
• Strong jurisdiction: Located in the mining-friendly and stable jurisdiction of Brazil, the project mitigates country risk.

G Mining's combination of near-term cash flows, experienced leadership, exploration upside, acquisition growth potential, and discounted valuation makes it a compelling gold investment.