Promising Emerging Gold Producer Building Brazil's to be Third-Largest Mine

G Mining Ventures is a Canada-based junior gold mining company focused on developing and operating mines in the Americas. Its flagship project is the large, high-grade Tocantinzinho (TZ) gold project located in Para State, northern Brazil. The company aims to commence production at TZ in H2 2024, establishing it as Brazil's third-largest gold mine.

Advanced Construction Progressing Rapidly

Construction at TZ commenced in September 2021 after completing a feasibility study and making a formal construction decision. The project is now 25% complete after over 1.2 million work hours, with $172 million spent out of a $460 million capital budget. Major equipment purchases are on track, with most big-ticket items already acquired within budget.

The company is utilizing a self-perform model for construction, giving it tight control over costs and timelines. The current workforce stands at 1,700, up from just 30 when G Mining acquired the project. Finding skilled local labor has not been an issue. The team has relevant expertise from building mines across South America.

On Track to Deliver the Mine on Time and Budget

CEO, Louis-Pierre Gignac stated the company has been successful in keeping the project's budget and timeline on track, without having to play catch-up. He believes inflation concerns have peaked and some input costs are now falling, though fuel prices rose earlier this year. Major equipment and processing gear came in on budget.

The main focus is ensuring the grinding mill equipment arrives on schedule from China and keeping the construction progress aligned. The company has poured concrete foundations and will soon install the grinding circuit. Overall, no major surprises or scope changes have occurred that could delay the set timelines.

Large Scale Project with Solid Economics

At full production, TZ will be a large operation, producing 161,000 ounces per year over a 10.5-year mine life. It will be an open pit mine feeding a conventional carbon-in-leach processing plant with average recoveries of 90%. The recent feasibility study outlined robust economics at base case gold prices of $1,600/oz, including:

• After-tax NPV (5% discount rate): $660 million
• After-tax IRR: 24%
• All-in sustaining costs: $817/oz
• Upfront capital costs: $461 million
• Payback period: 2.9 years

With gold currently around $1,900/oz, the NPV rises above $1 billion. The large production scale and low costs make TZ a compelling project. Permitting is complete, and licensing is on track, de-risking the execution.

Significant Exploration Upside in Prolific District

Beyond TZ, G Mining controls a large land package covering 996 sq km in the prospective Gurupi Gold Belt. This includes 35 km of strike along the main TZ mineralized trend, providing substantial exploration upside once the mine is built. Previous work was limited, leaving significant discovery potential.

The company plans to ramp up exploration drilling after achieving commercial production at TZ. The aim is to find additional deposits that can add reserves, increase grades, and extend mine life. Replicating the success of TZ could provide a significant boost to the company's value.

Capable Management Team with Proven Mine-Building Expertise

G Mining's management team has an impressive track record of successfully developing mines across the Americas. They have built seven mines over the past decade, keeping projects on time and budget. Their hands-on, self-perform approach gives confidence they can execute well at TZ.

The CEO also aims to grow the company into a diversified, multi-asset producer. They are actively seeking M&A opportunities to acquire additional development and producing assets across South America and Canada. The goal is to create a mid-tier gold miner with 250,000-500,000 oz/year production within five years.

Prominent Strategic Investors Provide Strong Backing

G Mining has attracted three leading mining companies as strategic investors: La Mancha (25% ownership), Franco-Nevada (9.9%), and Eldorado Gold (17.8%). Having these major players on board provides credibility and support for the company's growth plans.

La Mancha aims to support G Mining in developing into a larger gold producer over time. Franco-Nevada gains royalty exposure to future projects. Eldorado gains upside through its equity stake in TZ after selling the asset to G Mining.

Conclusion: Attractive Risk/Reward Opportunity

G Mining offers an appealing risk/reward profile for investors seeking leveraged exposure to the gold price. Key points:

• Rapidly advancing construction of a large, low-cost gold mine in a premier mining jurisdiction.
• Skilled builders with a proven track record of executing projects on time and budget.
• Upside from exploration on an extensive and underexplored land package.
• Backed by three prominent mining companies with deep expertise.
• Trading at a discount to emerging producer peers and below fair asset valuation.

With gold prices supportive, G Mining appears primed to create substantial value for shareholders as it transitions to a profitable gold producer within two years. The company merits consideration for investors bullish on gold.

The Investment Thesis for G Mining

• Rapidly advancing the construction of a large, high-grade gold project with robust economics. The TZ mine will be Brazil's 3rd largest gold mine producing over 160,000 oz/year. The low all-in sustaining costs of $817/oz provide healthy margins at current gold prices.
• Experienced management team with a track record of building mines on time and budget. Their hands-on construction approach derisks execution. The CEO has built 7 mines in the past decade.
• Exploration upside from extensive land package covering a prolific gold belt. Potential to find additional deposits and extend mine life through targeted drilling after achieving commercial production.
• Backing of three prominent mining companies as large strategic shareholders. Validation from La Mancha, Franco-Nevada, and Eldorado Gold.
• Trading at a discount to peers and below conservative NAV estimates. Upside re-rating potential as project de-risked through construction and ramp-up.
• Leveraged exposure to rising gold prices. Mine economics enhance significantly with higher gold prices. NPV rises to over $1 billion at $1,900/oz gold.
• Potential M&A target as the company looks to become a multi-asset mid-tier producer. Would be an attractive consolidation opportunity for mid or senior-miners.

G Mining offers investors an attractive risk/reward opportunity with exposure to a near-term emerging producer with exploration upside, backed by proven mine builders and strategic partners. The company appears undervalued relative to peers and has strong re-rating potential as execution risks recede over the next two years. For investors bullish on gold, G Mining warrants consideration as a promising investment.