The Conversation (0)
A recent article by RCKS Talk highlighted Northern Vertex Mining Corp (TSXV:NEE).
A recent article by RCKS Talk highlighted Northern Vertex Mining Corp (TSXV:NEE).
As quoted in the article:
Northern Vertex Mining Corp. (TSXV:NEE) provided an update on its optimization plan which should improve both the mine’s economics, both for the five-year mine-life (Phase II) and the longer-term (Phase III). A key piece of the plan is to move the mine from diesel power, as envisioned in the feasibility study, to grid power. We expect a nominal increase in initial capital; however, the planned savings of US$16 million over the first five years should materially improve the project´s currently robust after-tax IRR of 48%. As well, the company plans infrastructure improvements (upgrade to Silver Creek Road) and is examining the sale of its waste rock as aggregate which may be a source of additional revenue. Although the power line construction and road upgrades require additional permits, the Moss mine remains on schedule to commence commercial production in Q4 2017. With the project remaining on schedule, we view these optimization initiatives positively, allowing NEE to further reduce costs and improve project economics. At C$99/oz, Northern Vertex currently trades at a premium to peers (C$54/oz). In our view, this premium valuation is warranted given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension potential from the ongoing Phase III engineering work or the ongoing exploration program
Connect with Northern Vertex Mining Corp (TSXV:NEE) to receive an Investor Presentation.
Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. RCKS Talk aims to provide unique investment ideas for everyone. Red Cloud KS may hold long or short positions in companies mentioned and/or may have provided or provide in the future services to these companies. See their full disclaimer for details.
