Mid-Tier Producer of One of the World’s Top Five Highest Grade Gold Mines.
Monthly Dividend with >4% Annual Yield.
Strong Balance Sheet.
Fully Funded Guyana Project Expected to Double Production in 2024.
GCM Mining (TSX: GCM, OTCQX: TPRFF) produced 206,389 ounces of gold in 2021 from its Segovia Operations, one of the world’s top five highest-grade gold mines. They met their guidance for a sixth consecutive year and their exploration program not only replaced what they mined last year, it contributed to significant increases in their mineral reserves and resources and yielded solid results in their brownfield drilling campaign. Its Segovia Operations has produced over 6 million ounces of gold over 100+ years, and in the last 11 years, under the operation of GCM, it has produced 1.5 million ounces with an average head grade of 13.6 g/t. Segovia is a significant free cash flow generator.
The Company’s production is expected to double in 2024, to >400,000 ounces, when it’s fully funded Toroparu Project, located in Guyana, begins producing. Toroparu is one of the largest undeveloped gold/copper projects in the Americas, located in one of the world’s fastest growing economies. There are 8.4 million ounces of measured indicated gold on the project, and over 140 million tonnes of copper to be recovered over the mine life as per the PEA. GCM is currently infill drilling the resource and anticipates that it will be releasing the results of a pre-feasibility study by the end of this July.
Its leadership has the know how and know who when it comes to operating in Latin America, having demonstrated operating and mine building experience with a track record of success. GCM also has 44% equity interests in Aris Gold (TSX: ARIS) and a 29% equity interest in Denarius Metals (TSXV: DSLV), providing additional value to shareholders through exposure to diversified projects and metals.
In a time of market uncertainty, its monthly dividend is extremely attractive. GCM remains one of the highest yields in the sector at >4% and the only producer (non-royalty) providing a monthly dividend.
GCM is currently trading at approx. $4.50/share, with analyst ‘buy’ ratings between $8.57-$17.00. They are undervalued, compared to peers, on a like for like basis, and in addition to their monthly dividend, are actively repurchasing shares through their NCIB. GCM offers an attractive value proposition, and its Management Team has demonstrated a commitment to executing on its strategy and meeting their guidance.
Disclosure: I have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial long or short position within the next 72 hours. I wrote this article without external assistance, and it expresses my personal opinions. I was not compensated for this article, and I have no business relationship with any company whose stock is mentioned in this article.
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