Smooth Operator: G Mining Races to Join Gold's Top Ranks

• G Mining Ventures is building Brazil's 3rd-largest gold mine, scheduled for commercial production in the second half of 2024.
• The project will produce 175,000 ounces of gold per year for 10.5 years at low all-in sustaining costs of $681 per ounce.
• Construction is currently 76% complete and on budget. $430 million of $457 million capital costs have been committed.
• The company aims to be a half-million-ounce gold producer in the Americas in the next 5 years through additional acquisitions. Evaluating projects that can add at least 150,000 ounces per year.
• Leveraging technical expertise of founders to build projects on time and on budget to generate returns for shareholders.

the With inflation rising and economic uncertainty looming, gold has reemerged as an attractive safe-haven investment. Both retail and institutional investors have been flocking back to the yellow metal. One company poised to capitalize on renewed interest in gold is G Mining Ventures, a Canada-based developer rapidly advancing what will become Brazil's third-largest gold mine towards production later this year.

G Mining's Flagship Tocantinzinho Project

The flagship Tocantinzinho (TZ) project in northern Brazil is the main driver of G Mining's investment thesis. This open pit mine is slated to begin commercial gold production in the second half of 2024, with an annual output of 175,000 ounces sustained over a long 10.5-year mine life. Cash costs are projected to be a low $681 per ounce, providing robust profit margins to fund both debt repayment and future growth.

The economics of the TZ project are underpinned by proven and probable mineral reserves of 2 million ounces of gold grading 1.8 g/t. But exploration upside remains, with another 700,000 ounces in the inferred resource category and largely untested regional targets that could substantially expand the resource base over time.

Construction Progress and Funding

Construction progress also continues to track ahead of schedule, with overall completion already reaching 76% by the end of December 2023. Key infrastructure like the process plant, tailings storage facility, main power substation and transmission lines are well underway. The current workforce has peaked at over 2,200 employees and contractors on site.

Importantly, $430 million in capital expenditures have already been committed. The remaining capex will easily be covered by existing cash projected by the company. And potential warrant exercise in September 2024 could bring in another $70 million.

This means the funding risk often associated with mine developers is largely mitigated. Shareholder dilution appears relatively modest at this stage of development.

As G Mining's Senior VP Duan Petkovich explains:

"So the project is 76% finished as at the end of December, construction is at 73%. We have $430 million committed, so 94% of the project and the balance is just execution."

Technical Expertise Driving Success

What truly sets G Mining apart though is the technical expertise to deliver projects on schedule and budget - a remarkable feat these days. The company implements an innovative construction management model where its engineers oversee all facets of development. This ensures better control, adaptation ability and productivity optimization.

As evidence, the TZ project remains on target for commercial production within 3 years of acquiring the asset in early 2022 The feasibility study and execution plan have proven accurate so far despite volatile market conditions.

Ambitious Growth Strategy

But TZ is just meant as a springboard for G Mining's greater ambitions - to become a diversified 500,000-ounce-per-year gold producer in the Americas within 5 years. This will require acquiring at least one or two additional later-stage assets capable of contributing over 150,000 ounces each. An aggressive consolidation strategy is now underway evaluating various projects, partnerships and corporate opportunities.

The company can leverage its strong technical capabilities, existing cash flows and institutional shareholder base towards funding this next phase of growth. Continued access to capital should position it favorably amongst mid-tier developer peers competing for the few quality assets that meet its criteria. Unlocking further value from larger companies' non-core deposits could be a creative way to accelerate plans.

G Mining possesses several key factors that improve the investment case

• Construction and production risks are diminishing at its flagship gold project
• Funding is largely secured to complete TZ development
• Proven technical expertise to deliver projects on time and on budget
• Ambitious vision to aggressively consolidate additional properties
• Supportive major shareholder base to finance the next growth phase

Compared to other emerging mid-tier producers, G Mining Ventures screens attractively across several metrics

• Market capitalization of $850 million leaves ample upside potential
• Enterprise value per ounce of only about $115/oz is well below peers
• Near-term cash flows from TZ can fast-track debt repayment and growth

“Our business model is very unique. We're starting to get interest from the generalist Institutional Investor, because when we speak with them we don't have to talk about grade or strip or project specifics. It's 'we build projects on time and on budget. This is how we do it and here's how we'll make the money., and people relate to that."

G Mining Ventures presents a compelling investment opportunity for gold exposure, outsized returns and long-term growth optionality. Its executing ability makes it stand out as the next mid-tier consolidator in the Americas. As the stream of positive project milestones continues unfolding in 2023-2024, shares appear poised to re-rate substantially higher.

The Investment Thesis for G Mining Ventures

Actionable advice for investors:

• Initiate position now while shares are still undervalued relative to peer valuations
• Average up on pullbacks to accumulate ahead of catalysts
• Hold the core position for 2-3 years as the company transitions to mid-tier producer status
• Write covered calls or take partial profits around key milestones if risk tolerance lower

G Mining Ventures offers investors an optimal mix of near-term gold production potential and ambitious longer-term growth prospects in the Americas. Construction progress, funding security and proven technical expertise de-risk its pathway for efficiently advancing projects into production. Attractive valuation, supportive major shareholders and non-dilutive financing sources provide additional reasons to be bullish on shares as the next emerging mid-tier consolidator.

As G Mining Director Dusan Petkovich highlights, the gold mining industry has struggled tremendously over the past decade to preserve investor confidence and access risk capital. Major value destruction has led to a mass exodus of funding from the sector. In the UK alone, investments have plunged from $40 billion to just $12 billion by one estimate.

Essentially, G Mining aims to lead by example - demonstrating how adopting innovative technical solutions and financial prudence can efficiently translate resources into shareholder value. Early success could entice generalist investors back to the gold sector. And more accessible capital allows well-run companies to flourish. It sets in motion a virtuous cycle benefitting the entire precious metals industry over the long run.