ELMGF - Element79 Gold Corp. (ELMGF) - Getting In On the Ground Floor

Initiating coverage with an Outperform rating. From the time of its initial public offering in August 2021, Element79 Gold has rapidly assembled a diversified portfolio of precious metals properties in the United States, Canada, and Peru. The company's 20-property portfolio, including those for which it has an option or letter of intent to acquire, includes sixteen 100%-owned projects in Nevada, two in Canada, and two in Peru. Its flagship Maverick Springs project in Nevada, which was acquired in December 2021, hosts an inferred resource of 3.71 million ounces of gold equivalent with significant expansion potential. The company also owns 15 properties along the Battle Mountain Trend in Nevada and is considering each for additional exploration, joint venture, sale, or spin-out.Accelerated path to cash flow generation. Element79 Gold recently executed a letter of intent to acquire two past producing gold mines in Peru, the Lucero and Machacala mines, with the intent to return Machacala to production within the next 18 to 24 months at a maximum rate of 350 tonnes per day. A definitive agreement is expected to be executed by the end of June with the transaction closing shortly thereafter. While the company's Nevada projects provide scale and underpin the company's valuation with an existing resource, the projects in Peru offer the potential for higher grade ore and the prospect of near-term production and cash flow. Read More >>