Since my first interview with Mr. Ken Berry, President & CEO of Northern Vertex (TSX.V: NEE) for Stockpools, I have kept an eye on the company. I even went so far as attending the recent event at Jekyll Island largely because they were present. When they sent me an invite to visit the site last week, I jumped at the chance. I have a lot to share from the experience, but will start simply with a short video showing the site. See what the Moss Mine looked like just a few short days ago as Northern Vertex advances towards commissioning "America’s next producing gold mine."
Exploration is an important part of the mining industry, but someone has to actually produce the metals and I believe a lot of value can be created around new producers. Northern Vertex has been trading around a market cap of $90 million recently and the "transition from construction to commissioning is underway, our operating team is in place, and our cash balance is strong," as CEO Ken Berry said in the news release out today.
After pouring over the numbers, I suspect that most analysts think Northern Vertex is fairly valued. For better or worse, I'm more of a "wild-ass speculator" and able to look at things a little differently.
My impression continues to be that Northern Vertex has the potential to become a billion-dollar company. You might think I am getting ahead of myself with that since the current phase of mining is valued at $55.3 million (After-Tax NPV at 5%) and the recently-announced extension of mining along strike is valued at $93 million, but this production could give them the toehold needed to exploit other prospects on their land package or acquire other projects in the area. Easier said than done, of course, but I think the next wave of a bull market in gold mining shares will be driven by surprising success of relatively unknown emerging producers.
I mentioned all this to Mr. Bill Martinich, the Mine Manager, and he told me an interesting story that traced the arc of his career to the Moss Mine today as follows.
His first job was at Placer Dome, which had excellent operations. He thought it was normal enough that things worked well and people communicated with each other in a relatively open manner at certain times. One day, someone told him that this team culture among the engineers was unique, but he didn't appreciate it at the time. He sure remembers it now, as he's worked at other mines and seen how bad things can be. As a leader at a new mine, he believes he can cultivate a certain culture right from the start of operations. That may not sound like much, but it echoes things said by the CEO Ken Berry and provides the kind of foundation required to build a very large gold mining company.
The $11 million financing announced today shows that I am not alone in this vision for the company.
Again, it is my pleasure to share a short video from site here. This particular video was filmed on Saturday, December 16th and shows the view from the high point marked by an X in the map above. I look forward to sharing more from the site visit over time. For now, I will simply point out how well they have laid out all the parts of the operation on the patented claim –- mise en place for a mine site.
Please note that I was compensated to publish and distribute this promotional content. I own shares in Northern Vertex and may buy or sell without notice. This is not investment advice.
