Hard to find such a growthstory in mexico with such a low marketcap ! Magna gold aquired 2020 the san francisco mine to become a gold producer . Magna made a PFS and ramped up goldproduction . 4 weeks ago magna achieves full -scale commercial production in such a short time . That speaks for the first class management . They will produce about 60 000 ounces 2021 and about 90 000 ounces 2022. The strip ratio is coming down from 8 to 1 to 3 to 1 , which will bring down the all in all costs from 1200 Dollar . Furthermore the trend of the strip ratio should go to 2,5 to 1 .
With 1,5 Million ounces in the ground and over 750 000 ounces of reserves the san francisco mine has a long life of mine ! The best is , that near the mine they made a new gold discovery , which could be a new " san francisco mine " This new target has priority one to grow the company.
At 1800 Dollar gold price and 90 000 ounces 2022 magna will make about ( 1100 Dollar all in costs - my guess ) 75 Million Candollar free cash flow year . The free cash flow ratio to the marketcap, shows that magna gold is very cheap . Beside the mine there are many targets to explore for gold and silver ! ( 41 000 ha ) . The potential is huge .
2020 magna aquired further the san judas project , which could be another san francisco mine . Exploration should begin soon !
The mercedes project , which should be in production at the end of 2021 / 2022 is another interesting asset of magna gold . A total of 2,723 meters of RC drilling were completed in 21 holes in Q4, 2019, which confirmed near-surface gold / silvermineralization along 300 meters of La Lamosa. 900 m away from La Lamosa, Chip sampling to date has returned high gold and silver grades on surface and in historical mine workings.
Also salto colorado , noche buena and la cueva are showing that there is high grade gold with silver zinc lead and even copper . Mercedes could add much value to the company with more exploration
Also 2020 Magna gold aquired the margarita silver project from sable resources . I think margarita is the perfect silver project for magna , because the CEO knows that silver will have a big future . Margarita is a high grade vein system with open pit potential . It is the extension of gatos silver project with 200 Million ounces of silverequivalent in the ground . The Ceo clearly says , that margarita is a high priority asset , because it is a high margin asset with fantastic infrastructure . A PEA should come first quarter 2022 . Production maybe even 2023 .
Magna gold will look for further assets in mexico and maybe soon a new asset will add much more value to the company !
Magna gold has a plan ! The plan is to grow to a 200 000 ounces of goldequivalent producer in mexico . The management is top notch and the combination of the precious metals super-cycle and this huge story let me feel that i am right here to invest in magna gold .
I can say no shareprice in two or three years , but i guess 10 Candollar or even more is possible .
