GoldMining Targets Valuation Gap With San Jorge, La Mina Development Push

Key Points

• GoldMining says its project portfolio is undervalued: The company reported more than $250 million in cash and equities compared with a market capitalization of roughly $300 million, and is shifting from acquisitions toward active development and exploration.
• San Jorge is the top development priority: A preliminary economic assessment outlined an after-tax NPV above $500 million, annual production exceeding 50,000 ounces for more than 10 years, and an IRR above 40%. Drilling is underway to test expansion areas and support a future pre-feasibility study.
• La Mina and other assets offer additional growth catalysts: The Colombia-based gold-copper project has a base-case NPV above $1 billion and projected production of more than 150,000 gold-equivalent ounces annually. Upcoming drill results from San Jorge and Whistler, along with potential advances at Crucero and Yellowknife, could help close the valuation gap.

GoldMining NYSEAMERICAN: GLDG outlined plans to advance its portfolio of gold-focused projects across the Americas, emphasizing recent preliminary economic assessments, exploration activity and what management described as a significant gap between the company’s market capitalization and the value of its cash, equity holdings and development assets.

The company’s president and CEO said GoldMining had more than $250 million in cash and equities against a market capitalization of about $300 million, leaving relatively limited value attributed by the market to its project portfolio. Management said it is shifting from an asset-acquisition strategy toward active project development and exploration, supported by an expanded technical and corporate-development team.

San Jorge Prioritized for Development

GoldMining identified its San Jorge project in Pará State, Brazil, as its leading development priority. The company completed a preliminary economic assessment, or PEA, for the project during the past year, outlining an after-tax net present value of more than $500 million using a 5% discount rate and a gold price assumption of $3,500 per ounce.

According to management, the PEA contemplates production of more than 50,000 ounces of gold annually for more than 10 years, an internal rate of return above 40%, and an all-in sustaining cost of roughly $1,400 per ounce. The company said the project’s value would exceed $800 million at a $4,400 gold price assumption.

Management also highlighted San Jorge’s infrastructure, including its location about two kilometers from a paved highway and commercial power. The 46,000-hectare property has room for potential expansion, the company said, and is located in an emerging mineral district alongside other projects and operations in the region.

GoldMining has been drilling at San Jorge for several months, with results expected in the coming weeks and months. The initial drilling has targeted areas outside the known resource, generally within a one- to three-kilometer radius of the main deposit. Later drilling is expected to shift toward work supporting a pre-feasibility study, including infill drilling, upgrading inferred resources, geotechnical drilling and metallurgical drilling.

La Mina PEA Highlights Gold-Copper Potential

The company also recently released a PEA for its wholly owned La Mina project in Colombia. Management said the gold-copper project carries a net present value of more than $1 billion under its base-case assumptions and could produce just over 150,000 gold-equivalent ounces annually.

La Mina’s mineralization is approximately 70% gold, with the balance consisting primarily of copper and a smaller silver contribution, management said. The project includes three porphyries clustered within about one kilometer of each other, providing potential flexibility for mine sequencing and future scale.

GoldMining said it sees an improving investment environment in Colombia following federal elections earlier in the year. The company holds an extensive portfolio in the country and said La Mina has potential for further resource expansion.

Broader Portfolio and Spin-Out Interests

GoldMining’s wholly owned assets are located in Canada, Brazil, Colombia and Peru. Management said more than three-quarters of the portfolio’s commodity exposure is gold, while copper represents about 20%. The company cited more than 1 billion pounds of measured and indicated copper and another 0.5 billion pounds in the inferred category across its portfolio.

At its Crucero project in Peru, GoldMining said a revised resource estimate incorporated antimony, which management said adds about 25% to 30% to gold-equivalent ounces depending on the resource category. Crucero contains more than 2 million ounces of gold in the indicated and inferred categories, according to the presentation.

The company also highlighted its Yellowknife project in Canada’s Northwest Territories, where the past-producing Discovery Mine produced more than 1 million ounces of gold before closing in the late 1960s following a fire. GoldMining said the current resource outside the historical underground workings grades more than 2 grams per tonne gold and that the project could be among its next assets to advance.

GoldMining retains investments in several companies created from portfolio assets. It owns just under 10% of Gold Royalty, which was formed from royalties on GoldMining assets, and approximately 71% of U.S. GoldMining, which holds the Whistler gold-copper project in Alaska. Management said U.S. GoldMining recently completed its largest drill program and expects results in the coming months.

The CEO said GoldMining believes continued progress at San Jorge, drill results from Whistler, advancement of La Mina and potential work at Crucero and Yellowknife could help narrow the valuation gap identified by management.

About GoldMining (NYSEAMERICAN:GLDG)

GoldMining Inc is a mineral exploration and development company focused on advancing a portfolio of gold projects in the Americas. The company does not operate producing mines; its activities center on acquiring, evaluating, exploring and developing mineral properties with potential for gold and other precious metals.

GoldMining's portfolio includes the Yellowknife Gold Project in the Northwest Territories, Canada, along with projects in the United States, Mexico, Colombia, Brazil and other jurisdictions in the Americas.

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