Operational Discipline Meets Gold’s Supercycle: How G Mining Ventures Is Building a 500,000-Ounce Platform Without Dilution

G Mining grows to 500k oz by 2028 with fully-financed Oko West. Trades 0.86x P/NAV below peers despite superior growth. $4B NAV at $3.4k gold on Oko West alone.
- G Mining Ventures is executing a clear growth strategy to nearly triple production from 175,000-200,000 ounces annually at its operating Tocantinzinho mine in Brazil to 500,000 ounces by 2028 through the addition of the fully-financed Oko West project in Guyana.
- The company announced a $350 million corporate credit facility with a $150 million accordion feature that, combined with cash flow from Tocantinzinho, fully finances Oko West development without shareholder dilution. The project has already achieved 35% engineering completion and nearly $100 million in expenditures by the end of August 2025 ahead of schedule.
- Tocantinzinho operates with all-in sustaining costs of $1,170 per ounce in the first half of 2025, generating huge operating margins and benefiting from structural advantages including access to cheap hydroelectric power, low strip ratios, and minimal inflation pressures.
- G Mining trades at a P/NAV of 0.86, below its peer group, despite management estimates that Oko West alone carries a $4 billion net asset value at $3,400 gold prices, suggesting significant re-rating potential as the project advances toward first gold production targeted for October 2027.
- The Gurupi project in Brazil represents substantial exploration upside with an existing 2.6 million ounce resource that management believes can expand to 4-5 million ounces to support a potential third 200,000+ ounce per year operation, with the first drilling since 2019 commencing in November 2025 following the recent lifting of a historical injunction.
In an era when gold prices have reached all-time highs, few companies present the compelling combination of operational execution, financial discipline, and growth trajectory that G Mining Ventures Corp. offers. With one mine in production, another fully financed and advancing toward construction, and a third project showing significant exploration upside, G Mining represents a case study in how experienced management teams can capitalise on favourable market conditions while maintaining financial prudence.
The company's immediate objective is clear: grow from current production of 175,000-200,000 ounces annually at its Tocantinzinho mine in Brazil to 500,000 ounces by 2028 with the addition of Oko West in Guyana. This near-tripling of production comes at a time when gold market fundamentals remain exceptionally strong, creating an environment where operational leverage translates directly to substantial shareholder value creation.
Tocantinzinho Delivers Cash Flow and Credibility
G Mining's foundation rests on the Tocantinzinho mine in Brazil, which is performing at the upper end of management's expectations. Louis-Pierre Gignac, President & CEO of G Mining Ventures noted
"Our AISC has been very close to guidance. Obviously with gold prices going up, royalty costs are higher. But if you look at the first half of the year, our AISC was $1,170/oz. We are generating great cash flow at these price levels for sure."
The operational success at Tocantinzinho is not accidental but rather reflects several structural advantages.
"We benefit from having the TZ (Tocantinzinho), which is a new operation, low strip ratio, a low cost structure with access to cheap power."
The mine's access to Brazil's hydroelectric infrastructure provides a competitive advantage that many peers lack, particularly those operating in regions dependent on diesel generation or higher-cost power sources.
Importantly, Gignac noted that the inflation pressures have been minimal at this point, a significant achievement in an industry where cost escalation has challenged many operators. The combination of new infrastructure, efficient operations, and favourable input costs positions Tocantinzinho as a reliable cash generator throughout various commodity price cycles.
Oko West: Fully Financed Growth Without Dilution
The centerpiece of G Mining's near-term growth strategy is the Oko West project in Guyana, which represents a 350,000 ounce per year addition to the company's production profile. The project has reached a critical inflection point with the announcement of comprehensive project financing that demonstrates both the quality of the asset and the company's access to capital markets.
"We're essentially one of the highest growth profile stories in the market if you ask me. We announced the financing for Oko West just earlier this week," Gignac stated. "It consists of a bank essentially corporate facility for $350 million to start with an accordion feature where we can add $150 million to it."
This $350 million facility, expandable to $500 million, combined with cash flow from Tocantinzinho, provides full funding for Oko West's development. Critically, as Gignac emphasised, this approach limits shareholder dilution at this point for our next leg of growth with Oko West.
For equity investors, this financing structure is particularly attractive. Rather than issuing shares at what management believes are depressed valuations, the company secured non-dilutive debt financing backed by both the project's economics and the cash flows from existing operations. This suggests strong confidence from the lending syndicate in both the project and management's ability to execute.
Development Progress: Ahead of Schedule and De-Risking
Beyond securing financing, Oko West has made substantial physical progress wherein Gignac noted the progress is ahead of schedule:
"At the end of August, we're about 35% complete on the detail engineering [...] We've spent $74 million at the end of August which is going towards the project plus a lot of prepayments on equipment for another $24 million. So we're already at about, just close to $100 million spend on the project at the end of August. What that's doing is really advancing the de-risking the timeline."
The procurement strategy has been particularly aggressive and successful. This approach de-risks one of the most significant challenges facing mining projects in the current environment - equipment availability and delivery timelines.
"We're in a better situation than we were when we did TZ just given we didn't have that float in the schedule that we do have now."
The company received its full permit in September 2025 and plans to make a final investment decision this month, which Gignac characterised as more of a formality to update the project economics based on work completed and remaining capital requirements. The target remains first gold production in October 2027, though management indicated that acceleration is possible.
Current site activity includes approximately 700 workers operating from an exploration camp facility, with plans to ramp to 1,500-plus workers by Q1 2026 as the permanent camp and kitchen facilities are completed. Critical long-lead items including grinding mills (ordered in May) and a self-sufficient HFO power plant have been secured.
Interview with President & CEO Louis-Pierre Gignac
Significant Re-Rating Potential
Despite the operational progress and favourable market environment, G Mining trades at what management believes is a significant discount to its intrinsic value. Gignac noted,
"We still have a P/NAV right now that's based on consensus around 0.86, which is actually below kind of our peer group. We do expect to have that rerate process taking place in our valuation as we continue developing and advancing the project. We go and get that valuation just by successfully executing on the project."
This valuation disconnect stems from the company's mixed profile - operating cash flows from Tocantinzinho combined with a development-stage project at Oko West. The magnitude of potential upside is substantial, particularly given current gold prices. Gignac highlighted that the feasibility study included sensitivity tables, noting,
"It seems like we're getting to the upper end of what we published in our study. If you look at just $3,400 gold price, we're talking $4 billion NAV. So yeah, still a lot of upside and that's just on Oko West."
With the company's current market capitalisation in the US$5-6 billion range and a P/NAV of 0.86, the implied re-rating potential becomes clear. As construction advances, operational milestones are achieved, and the project transitions from development to near-production status, the typical valuation discount for development assets should compress, potentially driving significant share price appreciation independent of gold price movements.
Self-Sufficiency and Risk Mitigation
G Mining's approach to developing Oko West reflects lessons learned from previous projects and a clear focus on controllable risks. Rather than depending on government infrastructure development, which can introduce schedule uncertainty, the company has adopted a self-sufficient model.
"We've had to take an approach where we're self-sufficient when it comes to infrastructure," Gignac explained. This includes building a dedicated barge landing for logistics, constructing an access road specifically for the project, and most significantly, installing a self-sufficient HFO power plant. While Guyana is developing a gas-to-energy project that could eventually provide cheaper power, Gignac noted how the company's approach of de-risking the project through being self-sufficient rather than depending on uncertain timelines for government infrastructure.
The company generates substantial free cash flow from Tocantinzinho at current gold prices, providing internal funding for both Oko West development and exploration programs. Combined with the $350-500 million credit facility, the company has eliminated near-term financing risk and reduced dilution potential.
Jurisdictional Considerations: Working in Guyana
For investors evaluating G Mining, understanding the Guyana operating environment is essential. The country represents a jurisdiction with a long mining history but limited recent large-scale gold production, creating both opportunities and challenges. On the positive side, Gignac stated
"The relationships with the government has been great. They clearly are very supportive of having their mining industry grow and they've clearly been messaging that, and they've followed to the schedule more or less of what we thought we would track to in terms of permitting."
The permitting process for Oko West has progressed as anticipated, with the final mining license expected by year-end 2025, which will allow pre-stripping to commence during construction.
The labor market presents challenges typical of smaller jurisdictions as Gignac acknowledged. However, he noted that by providing a foundation of mining-experienced workers, the company is addressing skills gaps through training programs in partnership with the Ministry of Labor and by bringing in expatriate workers to provide specialised skills and mentoring to the local workforce.
Exploration Upside: Gurupi as a Potential Third Asset
While Oko West commands immediate attention as the near-term growth driver, G Mining's Gurupi project in Brazil represents significant longer-term upside. The project begins with a 2.6 million ounce resource - larger than Tocantinzinho's initial resource - and Gignac believes substantial expansion is achievable:
"We can get this to 4-5 million ounces. And this is of a scale that can then support a 200,000 plus ounce producer... So we're doing trench work on on the continuation of the trend which is showing mineralization at surface on the trend [...] So this is begging for drilling."
The geological setting is promising: an 80-kilometer long greenstone belt with surface mineralization visible across extensive strike lengths. Recent trench work has identified mineralization at surface across 500 meters to one kilometer distances. The company is mobilising its first drill rig to Gurupi in November 2025, marking the first drilling since 2019. The exploration program aims to expand the resource and publish an updated resource estimate in 2026, followed by preliminary economic studies.
Importantly, a historical injunction affecting the property was recently lifted, clearing a key obstacle. Gignac emphasised the community support for our project including the artisanal miners with agreements in place for artisanal miners to continue working until formal mine development requires relocation. This community groundwork reduces social license risks that have challenged mining projects in Brazil and elsewhere.
Capital Allocation and Financial Position
G Mining's capital allocation philosophy balances growth investment with exploration spending and financial discipline. The company is spending $25-26 million on exploration in 2025 across its three properties, and is definitely likely going to continue and likely increase with time as cash flow grows as per Gignac.
On the M&A front, management maintains an opportunistic stance. Gignac emphasised that the company is not dependent on acquisitions to achieve its objectives. However, the team continues to evaluate opportunities, particularly in South America, the Guyana Shield, and Brazil—jurisdictions where they have operational expertise and competitive advantages.
"We always want to start with a solid resource and we don't need a lot of technical work to be done on a project for us to have interest in it," Gignac explained.
The company's M&A criteria focus on scale and development stage. This approach aligns with the company's core competency: taking advanced projects with established resources and moving them rapidly toward production.
At current gold prices above $2,600 per ounce, the cash generation from Tocantinzinho is substantial. With AISC of $1,170 per ounce and production of 175,000-200,000 ounces annually, the operation generates operating margins translating to more than $250 million in annual operating cash flow before royalties, corporate costs, and taxes. This cash generation provides significant financial flexibility and reduces dependency on capital markets for growth funding.
Investment Thesis for G Mining
- G Mining offers investors exceptional production growth of 186% from current levels of 175,000-200,000 ounces annually to 500,000 ounces by 2028, with the Oko West project fully financed through a $350-500 million credit facility combined with operating cash flow, eliminating near-term dilution risk while providing substantial operational leverage to elevated gold prices.
- The company trades at a P/NAV of 0.86x, below its peer group average, despite possessing a superior growth profile and management's estimate that Oko West alone carries a $4 billion net asset value at $3,400 gold prices, suggesting significant re-rating potential as the project advances through construction milestones toward first gold in October 2027.
- Tocantinzinho generates robust free cash flow with all-in sustaining costs of $1,170 per ounce, producing operating margins exceeding $1,400 per ounce at current gold prices, while benefiting from structural advantages including access to cheap hydroelectric power, low strip ratios, and minimal inflation pressures that provide downside protection in various commodity price scenarios.
- The management team has demonstrated execution capability through the successful development and commissioning of Tocantinzinho, with current Oko West progress running ahead of schedule at 35% engineering completion and nearly $100 million already invested, while critical long-lead equipment procurement has been completed to de-risk construction timelines.
- The Groupy project represents significant exploration upside with a 2.6 million ounce existing resource that management believes can expand to 4-5 million ounces, potentially supporting a third 200,000+ ounce per year operation on an 80-kilometer greenstone belt, with first drilling since 2019 commencing in November 2025 to provide near-term catalysts independent of Oko West development.
- G Mining's jurisdictional diversification across Brazil and Guyana provides exposure to mining-friendly regulatory environments with government support, while the company's self-sufficient infrastructure approach at Oko West—including dedicated power generation, logistics, and access roads—reduces dependence on government-funded development and mitigates execution risks common to emerging mining jurisdictions.
- The company's disciplined capital allocation strategy, with $25-26 million in annual exploration spending funded from operating cash flow and an opportunistic approach to M&A focused on advanced projects in proven jurisdictions, positions G Mining to deliver organic growth while maintaining financial flexibility without requiring additional equity capital during a favourable gold price environment that enhances project economics across the portfolio.
TL;DR
G Mining Ventures offers investors a rare combination of immediate cash flow generation and exceptional near-term growth in a premium gold price environment. The company currently produces 175,000-200,000 ounces annually at all-in sustaining costs of $1,170 per ounce from its Tocantinzinho mine in Brazil, generating over $250 million in annual operating cash flow before royalties and taxes. This cash flow, combined with a newly announced $350-500 million credit facility, fully finances the development of Oko West in Guyana without shareholder dilution—a 350,000 ounce per year project targeting first gold in October 2027. The company trades at 0.86x P/NAV, below peer group averages, despite management estimates of $4 billion NAV for Oko West alone at $3,400 gold prices. Construction progress is running ahead of schedule with 35% engineering complete and nearly $100 million already invested by August 2025, while all major equipment procurement has been completed.
Beyond the near-term 186% production growth to 500,000 ounces by 2028, the Gurupi project in Brazil holds a 2.6 million ounce resource with potential to expand to 4-5 million ounces, representing a potential third production center. The investment case rests on proven management execution, non-dilutive growth financing, substantial operational leverage to elevated gold prices, and meaningful valuation re-rating potential as Oko West advances through construction milestones.
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