G Mining Ventures Corp's (TSX-V:GMIN, OTCQX:GMINF) successful first gold pour at Tocantinzinho and strategic acquisition of Reunion Gold position the company for significant growth and expansion, according to analysts at Jefferies.
The company reported that 77,000 tonnes of ore have been processed since the start of hot commissioning in June, with commercial production expected in the latter half of the year.
“Grades are reconciling well and ore stockpiles are building,” analysts noted.
Analysts expect the Tocantinzinho mine to produce 48,000 ounces of gold in 2024, followed by approximately 200,000 ounces per year during the first five years of full production.
The project accounts for 53% of GMIN's asset NAV.
Ore stockpiles have reached 2.6 million tonnes, with significant amounts of both low and high-grade ore identified. GMIN has managed to maintain preproduction mining rates despite adverse weather conditions, which bodes well for the ramp-up to a planned throughput of 4.7 million tonnes per annum.
In addition to this progress, analysts highlighted the company’s pending acquisition of Reunion Gold in an all-equity deal valued at a 29% premium, adding the Oko West project in Guyana to its portfolio. The $1 billion acquisition is expected to help GMIN achieve intermediate status.
“GMIN was on the lookout for another asset to help propel the company to intermediate status with the TZ build coming to an end,” Jefferies wrote.
“As previously noted, we view this deal as a good combination and expect GMIN to derisk and deliver Oko West.”
Analysts have a 'hold' rating and a C$2 price target on the stock.