G2 Goldfields (TSX: GTWO)
After meeting management twice during 2024, we are initiating coverage of GTWO.
The company has some highly prospective gold licences in a prolific gold belt in Guyana, a tier 1 mining jurisdiction.
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| G2 Goldfields | TSX: GTWO |
| Stage | Development + Exploration |
| Metals | Gold |
| Market cap | C$518m @ C$2.17 |
| Location | Guyana |
| Website | https://g2goldfields.com |
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| G2 Goldfields | Stock Profile |
| Shares Ourstanding | 239,238,615 |
| Fully diluted | 255,396,115 |
| Fully diluted insider holding | 56,386,202 |
| Cash | CAD$44 million |
| (As at the 1st December 2024) |
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City Investors Circle – Initiating Coverage of G2 Goldfields.
My current preferred criteria for investing in a gold mining company are,
- A quality management team that have delivered shareholder value before
- Tier 1 jurisdiction
- At least 1 million ounces of gold resources
- Plenty of exploration upside
- Well funded
- Generating good ongoing newsflow.
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G2 Goldfields ticks all those boxes for me.
One might argue that Guyana isn’t a tier 1 jurisdiction due to the occasional invasion threats from neighbour Venezuela, but the country has a degree of military protection from the UK and USA, and an actual invasion seems unlikely currently.
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Why do I like G2 Goldfields?
I have met with management twice this year, most recently in Zurich at the SMI conference. I was impressed with their presentation and I felt they are competent and honest, very important traits.
I should declare I am a shareholder of G Mining Venures, who recently purchased the Oko West property. This abuts G2’s property, where Gmin’s Block4 meets G2’s Ghanie and OMZ Zones.
After this transaction I focused on the area and immediately liked the look of G2’s assets.
They not only have over 2 million ounces of gold in resources, they are well financed, and have multiple highly prosepective high-grade gold targets along a 17km trend.
In all honesty I expect G2 to be acquired in short order, with Anglogold Ashanti, a 15% shareholder, and G Mining Ventures, with projects next door, looking like the likely bidders.
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Management
The G2 Goldfields management team is comprised of professionals who have been involved in the discovery of more than 7 million ounces of gold in Guyana and the financing and development of Guyana’s largest gold mine, the Aurora.
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Major shareholders.
- Management 20%
- Anglogold Ashanti 15%
- Other institutions hold around 10%
- Retail hold around 55%
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I always like to see management hold a significant stake in a company, and Anglogold’s 15% holding speaks for itself.
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Resources
Oko Main Zone
495,000 Oz gold Inferred
686,000 Oz gold Indicated
Ghanie Zone
604,000 Oz gold Inferred
236,000 Oz gold Indicated.
- A new Mineral Resource Estimate is due in Q1 2025.
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Near Term Cataylsts
Updated MRE – Q1 2025
Strategic Drilling – Connecting the high-grade OMZ with Ghanie, “drilling the gap”
Defining the Ghanie and NW Oko trends, follow up drilling
New drill targets along trend
Splitting out non-core assets in a newco, G3 (Record date 17th December 2024)
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That’s it in a nutshell. I like the company a lot, and feel with their excellent financial position they will generate lots of exciting newsflow in 2025.
They are spinning out non-core assets into a newco G3, focusing on their core assets, and giving those spun out assets a value they do not have inside the current company.
I wonder if this is being done in preperation for G2 being acquired? It wouldn’t surprise me.
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The live Spot gold price can be found HERE
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Disclosure
At the time of writing the author is intending investing in G2 Goldfields
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