The company, which will soon move into the construction phase at one of its Mexican projects, did its modeling at US$1,250 gold.
Gold’s rise above US$1,500 per ounce is exciting, but Doug Ramshaw, president of Minera Alamos (TSXV:MAI,OTC Pink:MAIFF), says it’s not a price his company needs to be successful.
The Mexico-focused firm is about to make the leap from becoming a gold developer to a gold mine builder, and according to Ramshaw, all the company’s planning was done at US$1,250 gold.
“Our business model is not predicated on needing higher gold prices. We run all our modeling at US$1,250, we’re going to make money at US$1,250 gold. The rest should be left on the table for our shareholders as upside as opposed to hoping gold gets to a certain level so our projects work,” he said.
Ramshaw, who was was speaking on the sidelines of the Precious Metals Summit in Beaver Creek, Colorado, explained that construction is due to start in November at the first of the two Mexican mines Minera Alamos plans to build in the next couple of years.
“There’s probably (only) half a dozen or so companies right now that are not gold producers that should be producers in the next 12 months, and I think that plays obviously very well to the current gold environment we’re in,” he commented.
Minera Alamos will be looking to put together a funding package for construction in the coming weeks, and Ramshaw noted that in general there’s money available for select gold companies right now.
“I think we’re really at the early stages now. There’s not a huge influx of capital yet, but I think that will come in time,” he said.
Ramshaw thinks gold will keep rising and believes his company stands to benefit from that move.
“(It’s) an exciting time because we (are) finally (going to) break away from being a gold developer to one of the very few new gold producers. And we think that’s a fantastic way for our shareholders to capture this move in the gold price — producing the stuff.”
Listen to the interview above for more from Ramshaw on gold and Minera Alamos. Our full playlist for the Precious Metals Summit can be found on YouTube.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.