G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) has been named one of RBC’s Global Best Mining Ideas for the fourth quarter of 2024.
The bank’s analysts have an ‘Outperform’ rating on G Mining Ventures and a C$17 price target, implying upside of almost 85% from its share price at the time of writing.
They see G Mining as “well positioned to grow” pointing out its top-tier management and technical team.
“We see the Tocantinzinho (TZ) mine, located in Brazil and now in commercial production, as a first step in building a growth platform, with G Mining targeting 500,000 ounces per annum by 2028 following the acquisition of Oko West and subsequent Preliminary Economic Assessment (PEA),” they wrote in a note to clients.
“We believe G Mining is differentiated from developer peers through its relationship with GMS, a private engineering/consulting firm with a strong track record of execution on large-scale projects for Newmont, IAMGOLD, Lundin Gold and others.”
The TZ mine is expected to produce about 200,000 ounces per year during its first full year of production in 2025.
Analysts see the normal ramp-up risks at the project, mitigated by the expected six months of ore stockpiled at the surface ahead of commissioning.
They noted that the addition of Oko West through G Mining’s acquisition of Reunion Gold has the potential to add 350,000 ounces per year of gold, with production as soon as 2028.
“Executing on/construction development of Oko West may be a risk, however we think that management has license to transact from shareholders and has necessary skills to progress the project,” they wrote.
With G Mining trading at a 35% plus net asset value (NAV) discount to gold junior and midcap producers, there is potential upside on production into 2025.
“As we get additional insight into the development path at Oko West (Feasibility Study expected in 2025), we see the potential for G Mining to trade at a premium to peers for the existing high-margin production, the growth pipeline, and the track record of strong execution assuming a successful ramp up at TZ,” analysts concluded.