This week I was lucky enough to connect with President, CEO and Director of Northern Vertex Mining Corp, Ken Berry. We talked about his plans for Northern Vertex, their transition on becoming a producer, and where Gold prices might be headed over the next few years.
Hi Ken, welcome to The Next Bull Market Move. Let’s talk about some very exciting news regarding the first gold pour at your 100% owned Moss Mine in Mohave County, western Arizona, that happened in March earlier this year. How big of a milestone is this for the company, and does this now transform you into a brand new U.S. gold producer?
Kerem, this milestone was the culmination of six years of work and over $90M in investment by groups such as Greenstone Resources, Sprott Lending and CAT Financing. Our Northern Vertex (NEE:TSXV) team of nearly 100 staff are very proud to have built and operate the most recent USA mine on stream in the last year.
I understand that the Moss Project to expected to produce 45,000 ounces of gold equivalent during the first five years of production. What’s the annual cash flow projected at for this period, and what plans do you have for that cash going forward?
Our PEA and Feasibility Study which can be viewed on our Website (www.northernvertex.com), outline a very robust financial returns (IRR - 67%; All in Sustaining Costs of $603 per oz), if all goes as planned we would expect the Moss to throw off $22 to $24M a year. Cash will be used to paydown the credit facility, optimize the mine and grow the company through exploration and consolidation.
You have some very big backers behind your company that include Greenstone Resources LP, Sprott Resource Lending, and Palisade Global Investments. How have these strategic alliances evolved during this long bear market within the Gold sector?
NEE has a strong track record in financing and building producing mines which has enabled us to develop strategic relationships with Sprott, Greenstone and CAT Finance. We are one of the few mining companies able to build a producing gold mine during a cyclical downturn in the resource sector. NEE shareholders are now positioned to add value when this market turns!
What plans does Northern Vertex have for the rest of 2018?
We outlined our strategic Goals in a January news release on our website, it included:
• Exceed Feasibility Study expectations
• Aggressively pursue US Consolidation
* Leverage the knowledge and experience of our team
* Deploy available capital (debt/equity)
• Initiate District Wide Exploration Targeting 1 million oz + Gold/Silver.
* Add resources nearby existing open pit
* Drill “Game Changing” exploration targets
• Pay down debt from cash flow
• Increase market awareness and shareholder base
• Increase analysts coverage
• Target production profile of 150,000 oz+ per year through M&A and organic growth
What are your thoughts on the current Gold price and where do you see Gold going over the next few years?
I believe we will see much higher gold and silver prices given the economic and political environment. Given we are a low cost open pit, heap leach operation, we are not as sensitive to metal prices as our peers.
And as a final question, why should investors take a look at Northern Vertex?
NEE is at the sweet spot, the inflection point of the typical mine cycle development chart, when a company hit’s commercial production and begins to add significant value for Shareholders.
Many thanks for your time Ken.
The Next Bull Market Move
For further research on Northern Vertex click on the link below from Palisade Research:
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