Diskussion zu Signal Gold [Anaconda Gold] (Seite 108)

[IQ4U]

Full text of the 60 min. interview with our Chairman....


Mr. Fitzgerald is an investor and investment banker with 25+ years of experience in which he sourced and executed a wide variety of transactions across multiple industries and capital markets. Following his return to Toronto in 2012, Mr. Fitzgerald co-founded Stope Capital Advisors, Inc. ("SCA"). SCA engages in a variety of merchant banking transactions in the mining, energy and agriculture sectors. Mr. Fitzgerald is the Chairman of Anaconda Mining and was previously Chairman and CEO of Orex Exploration Inc.


Mr. Fitzgerald received a B.A. with Distinction from Bowdoin College, a MSc. (Econ) from The London School of Economics and an M.B.A. from the Wharton School, University of Pennsylvania. Mr. Fitzgerald is a Canadian and British citizen and lives in Toronto, Ontario and Ketchum, Idaho.

Find out more on the team at Anaconda Mining here.

Peter: Hello, Mr. Jonathan Fitzgerald.

Jonathan: Good afternoon.

Peter: How are you?

Jonathan: I’m very well, thanks. It's a pleasure to have an opportunity to talk with you, Peter. You already know some of the exciting things that are underway presently at Anaconda, yet there is always more to learn. Thank you for your time.

Peter: You’re welcome. I recall when I first saw your name in the news release issued jointly by Anaconda and Orex, Jonathan. I wasn't familiar with Orex at all but had been following Anaconda for a few months at that point. I was very intrigued. I am glad to finally be in touch with you here and now.

Jonathan: It's a pleasure, Peter. I appreciate your interest in Anaconda and the opportunity to share our story.

The acquisition of Orex Exploration by Anaconda Mining was a transformative event for both companies, though I consider the transaction to be more akin to a merger than a sale. Perhaps that’s just my own egotism since we sold our company….via an all-equity transaction.

We did an all-equity transaction because our shareholders wanted to participate in the investment upside of the pro forma business. Though Orex is no longer an independent operating business the former Orex shareholders remain very committed to the business, as evidenced by the transaction’s shareholder vote of more than 99% in support. That percentage, by the way, was only slightly higher than the Anaconda shareholders’ favorable vote.

We're excited by the opportunity to work with a very strong management and operations team at Anaconda and we intend this transaction to be one of several more to come. This transaction sets the corner-stone for a much better business as it combines complementary assets with strong management and exemplary corporate governance. This is a story that we'd like to see evolve substantially over time. We're looking at the next three to five years, not the next three to five quarters.

Much of the excitement is still to come. We have a lot of ambition for this business.

Peter: Wonderful. To hear you speak about the next five years makes me think of the last five years. I was completely blown away by Anaconda's story from 2011-2016. I first heard about Anaconda from Mr. Dustin Angelo, Anaconda’s CEO, in November 2016. The company had raised equity in July for the first time in five years. They issued flow-through shares through Red Cloud Klondike Strike and used it for exploration in Newfoundland. Just pedal to the metal.

Dustin mentioned mergers and acquisitions in that first interview, but I never would have expected this. From what I've learned about Goldboro, it just gets better and better.

If we go back to the beginning, why did Nova Scotia capture your interest?

Jonathan: In early 2014, a group of colleagues and I went through the arduous process of reviewing every gold project in North America with a global resource of 1 million ounces or less. We felt that smaller projects offered two advantages: a discounted valuation versus large projects and, of course, a lower purchase price.

The database included approximately 400 projects, though we quickly eliminated a number by employing a relatively simple screening mechanism. We wanted to avoid projects that had significant binary risks – risks that could imperil a project such as regulatory, environmental or social risk factors that could not be assessed with any reasonable predictability.

We avoided projects that had highly convoluted ownership profiles or NSRs greater than 3%. In simple terms, we didn’t want a scenario where one party had significant upside while we, as shareholders, bore dis-proportionate risk. We didn't like projects that were partially owned, vended in, or milestone-based. We wanted to be in control of our destiny.

Needless-to-say, the 400 potential projects were soon reduced to a much more manage-able number. We got down to 20 or 30 projects that were interesting and we started to examine those projects in great detail. We quickly recognized that there was a concentration of these projects in Nova Scotia.

We began with the immodest ambition of acquiring all of the Nova Scotia projects and implementing a spoke-and-wheel strategy wherein multiple projects would deliver ore to a central processing facility.

Peter: How did you go from this grand plan to a more modest investment in a single project?

Jonathan: The interesting thing about doing M&A in the junior mining sector is that you really need a meeting of the minds in order to be successful. You need two counter-parties who share a vision, ambition, and willingness to work together. This condition was elusive.

Too often you get one side with a reasonable sense of relative-value while the other possesses a fantastical sense of its own worth -- in the absence of a shared sense of relative-value it can be difficult, if not impossible, to bridge the gap and strike a viable deal. I believe that a successful transaction must offer an equitable outcome for both sides – even in a distressed sale.

As mentioned earlier, I started looking at the Nova Scotia mining environment in 2014. At that time, the region was orphaned in the capital markets, despite the presence of a number of projects with good grade and small but economically viable deposits. Around that time, we also saw the financial demise of Ressources Appalaches Inc., which owned and operated the Dufferin Mine, and that situation adversely affected the perception of Nova Scotia mining.

The Nova Scotia mining scene was waiting for someone to serve as a catalyst… and that catalyst was Atlantic Gold. In a short period of time, the Nova Scotia mining scene went from moribund to highly active. Resource Capital Group acquired Dufferin from its creditors and added the Tangier and Forest Hill mines. Osprey Gold acquired the Goldenville deposit and followed with the acquisition of Lower Seal Harbor, Gold Lake, Miller Lake and, most recently, the Caribou gold mine. NS Gold continues to own and support its Mooseland project, though it does not possess the acquisition ambitions of the others.

Atlantic Gold’s leadership came at a time when the junior resource sector was gaining some stability after many years of weak investor interest and poor liquidity. This brought renewed attention to Nova Scotia gold mining. With this attention came ambition, capital and competition to acquire assets.

I wish I had moved quicker and with greater ambition, but that sentiment comes with the knowledge of hindsight. Our analysis suggested that Goldboro had the best combination of grade, known resource and resource growth potential in the region.

While we were unable to execute a roll-up strategy we were able to invest in the best of the Nova Scotia gold assets. The other projects have many virtues but none had the potential of Goldboro in our opinion.

Peter: What was attractive about Goldboro?

Jonathan: Nova Scotia became our focus pretty early because we saw value. We saw the right environment for developing a project. We saw impressively good grades with decent volume and, most persuasively, we saw very opportunistic pricing. They were truly orphaned projects. Goldboro was owned by Orex, which was a Quebec-based business with a Quebec-based shareholding that had struggled for many years to advance the Goldboro project. This is not a criticism of the incumbent management but, rather, a consequence of a very unfavorable capital market environment.

It was a project that had resource, volume, and grade, but it did not have management or capital. It was very much an asset, not a business. It wasn’t operating. It wasn't exploring. It wasn't doing anything other than fighting for its survival. All that being said, we believed that, of all the properties in Nova Scotia, Goldboro had the best grade, the largest resource, and the cheapest price.

The Goldboro investment represented a tremendous opportunity and reflected a simple thesis: we believed that a project offers its best risk-reward profile when it is substantially developed, but not yet in production. As they say in telecom finance, last-mile money has the optimal risk-reward profile. We wanted to be the capital that would facilitate a project going from resource in the ground to operations and cash flow in the bank.

I partnered with a U.S. family office, Falcon Capital, that had a very sophisticated view of gold as an investment asset and was looking at numerous investment strategies to monetize that view. The pre-production profile that I described offered one technique to make a leveraged long-term investment in gold.

Falcon Capital made the investment in Orex in the fall of last year. It was relatively modest investment given Orex’s low market capitalization. The intention was to get in, kick the tires, and figure out what we can do with this valuable but unappreciated asset. The Orex leadership had worked very hard to keep the company alive for the prior 10 years, but really hadn't been able to accomplish much in an operating sense. We saw this jewel and wanted to find a way to shine it up and make it more valuable.

Peter: Thank you so much, Jonathan. What a fascinating story!

I recall watching Atlantic Gold present at the Sprott Natural Resource Symposium in Vancouver in 2014 and thinking “What is going on in Atlantic Canada?”

I believe you mentioned that you started looking around in late 2015. And then came 2016 with a bang! I recall the first quarter as being a pretty wild time. It is impressive that you were prepared to develop a thesis, undertake the fundamental work and execute a transaction in such a volatile environment. It is encouraging to hear you and Falcon Capital can buy so well!

Peter: I have not heard of Falcon Capital before. It's amazing what global-macro investors do. The idea generation and trade execution is so creative from what I've seen on Real Vision.

Jonathan: Falcon Capital came with a very different perspective than the traditional junior mining investor. Investment in the Canadian junior mining sector has been promoted with a long-standing and resonating investment thesis: "get in for a nickel and out for a quarter".

It's hard not to admire that investment philosophy because there are very few environments where an investor can make a 5X return on their money in a short period of time. However, the statistics don't lie and those outsized returns are rare. Everyone knows about the great victories – last year’s hero was Barkerville Gold – but they are rare and they develop their own folklore.

Junior mining is a strange world, but it was good to come into it with Falcon Capital as an investment partner. They had a strong opinion about gold, a view about the global economy, and why it would be prudent to invest in a pre-production junior mining situation. It was definitely a pleasure to work with an investment partner who had a sophisticated macro view and can look to the long haul, not just getting from a nickel to a quarter or a quarter to a dollar. We are really looking at a five-year horizon and saying, “Let's build a business.”

Peter: And capital will travel. Nova Scotia is an area that is now open for business. What triggered this resurgence of interest in eastern Maritime mining?

Jonathan: Peter, capital is very efficient. Capital is not sentimental. Capital is coming into this market now because good quality operators have decided to focus on this region.

The more interesting question is: why is high-quality human capital coming back to the Maritimes to build mines? Because they realized that these assets were cheap, they were orphaned relative to other projects of higher profile, and the share structures of many of these little companies were highly fractured and easy to control.

High quality developers and operators have stepped back into the entire eastern Maritime region, including both Nova Scotia and Newfoundland.

Capital didn't come because it was pro-Maritime. Capital came because there's an opportunity to create good businesses.

Peter: That's right, Jonathan. Over my life, there's always been a lot of migration from the Maritimes to the Prairies -- Newfoundland to Alberta. I've always thought that would unwind and hoped it would benefit the Maritimes as a generation of experienced industrial professionals come back to the east coast and contribute to business there

My impression from talking to the Anaconda guys is that the mine contractors that they have working at Point Rousse are very high quality. They have been well-trained and educated at Memorial University and other eastern schools. Anaconda is not having trouble finding quality people to execute their business plan.

Jonathan: Peter, implicit in your comment is the very reason that I worked so hard with Dustin Angelo and his colleagues at Anaconda Mining to make this deal happen.

We were a great asset with a good board but no real management team nor business plan in action. They were an excellent operating and management team with a vertically integrated business. They have demonstrated a capacity to be effective small project miners, but they didn't have sufficient resource. They didn't have enough resource to sustain them for a mine life that would attract investors.

In a sense, they were the opposite of what we were. It was very obvious to me that marriage of the two could unleash tremendous value. The water access at both projects was particularly important as it could solve the logistical challenges of having a mine site and mill quite far apart. When Anaconda built their deep-water port, we noticed. The Goldboro deposits are only two kilometers from deep-water access, so the idea of barging ore economically started to come into the mix.

That is when we started to see how some sophisticated, out-of-the-box thinking could create significant synergies and value.

Anaconda has a great team. We have a team of dedicated Newfoundlanders who love to live here and are dedicated to the company and this project. They’re very committed. By the way, Peter, they aren't contractors -- they’re employees. And I would like to see them become shareholders as well.

We plan to continue to process ore from Pine Cove for the next couple years. Then, we expect to introduce this new ore from Goldboro into the mill. We expect the grades will be at least 2-3X higher than what we are realizing now.

It is an example of where one and one makes more than two. Whether it's three, five, or 10 -- time will tell. It's going to prove to be a lot more than two, in my opinion.

Peter: Thank you, Jonathan. Amazing to hear that Orex was an asset without a complete management team, while Anaconda was kind of the opposite. Normally, when I think of a shell in the junior mining world, it has some people but not much in terms of assets.

How did this merger come about?

Jonathan: This deal was the product of fortunate circumstances and some foresight.

When Falcon Capital made their investment, they stipulated that we would have the right to appoint a Board member, in addition to the immediate appointment of Bob Schaefer as Chairman of the Board. Bob was President of PDAC at the time. At the next annual shareholders meeting, I was also appointed to the Board.

When I joined the Board of Directors for Orex, the Board asked me to replace Bob as Chairman, so he could attend to personal matters, and to become CEO. Obviously, I accepted both. It was December 16th, 2016.

In accepting those responsibilities, I said to my colleagues on the Board, “Recognize that I am a career corporate finance deal guy. I barely know the difference between a diamond drill and a dental drill, but we will do a strategic transaction. A deal to be done here and we’re going to do it.” The Board was immediately and unanimously supportive.

Very shortly thereafter we appointed a Special Committee of the Board and began exploring a number of potential scenarios, and the one that had its own natural momentum was the deal we did with Anaconda.

We did our due diligence, as they did on us. The Special Committee visited Newfoundland and was uniformly impressed with the quality of people and operation at Point Rousse. It wasn't the grade in the ground, it was the flowchart of the processing facility and the people that persuaded us that this was the right deal for Orex. It cemented my view that they were the right partners to build the business we intend to build.

Peter: Did the transaction between Orex and Anaconda happen quickly?

Jonathan: Yes, it was done reasonably quickly. As I described earlier, I was familiar with most of the companies and projects in the Maritimes. There was nothing mystical about it. I knew who they were. I knew what they did. It was a question of introducing ourselves and opening a dialogue with them.

They were the ones that really recognized the opportunity that barging could bring to the situation. They saw value, we saw value, and we were both committed to the process of doing a deal. The challenge became one of price?

I was very clear from the start that there were certain metrics that I was unprepared to violate. They also had a strong view of their own value. Both of us ultimately decided to not haggle at the margin, but to establish a reasonable, logical relative-valuation and bring these two businesses together. Our exchange ratio was 0.85 and that resulting in the former Orex shareholders owning about 45% of the pro forma business. To me, that was utterly fair.

I could have argued for a few more percentage points for Orex shareholders and they might have argued for a few more percentage points for Anaconda shareholders, but we didn’t. In the long run, it was immaterial and neither sided wanted the pricing to be the impediment to getting a deal done. The value that could accrue here was far too great to not allow this deal to happen.

Peter: What a win, Jonathan.

I remember pouring over the details of the transaction soon after it was announced. I actually wrote a trio of articles on different aspects of the deal. I came away very pleased with the deal as an Anaconda shareholder.

Jonathan: I can tell you, as an Orex shareholder, I was also very pleased with the deal. Both shareholder groups gave exceptionally high approval for the deal. In round numbers, we were over 99% approval. My recollection is that Anaconda's shareholders were over 96% approval. That's pretty extraordinary.

It was clear that both parts were valuable, but the two businesses together were even more valuable. I was very happy with the outcome and relieved that my counterparts at Anaconda had a very logical, progressive, get-it-done mentality when it came to deal-making. They were very practical and there were only a few hiccups, which were all well-managed.

To go back to your original question, Peter -- yes, the deal was done quickly and it was done effectively. I would also say that my lawyers did a fantastic job. We were thin in terms of management capacity at Orex but we got it done. My CFO, Jacques Levesque, my inside counsel, Julie Godard, and the good people we retained at Fasken Martineau were fantastic. As deals go, it was not without its challenges but all those challenges were met and dealt with in a very pragmatic way.

Peter: And it's great to have Falcon Capital in the background, too. At this point of the market cycle, wherever we are, it's interesting to see a win-win combination of juniors. I haven't seen a lot of similar transactions lately.

I also liked how this was an all-share deal. It fits with Anaconda's legacy of not issuing a lot of equity as they survived 2011-2016. They actually excelled during that time period from an operational perspective.

However, the all-share deal has brought Anaconda's share count to almost 400 million. A rollback was approved with the Orex acquisition, but hasn't been undertaken yet.

The next 3-5 years have a lot of potential for you. What do you see coming towards us?

Jonathan: What a question, Peter. My view should be entirely evident, but it's not the public market's view. Anaconda’s per share valuation has dipped a few cents in the several months since the transaction was completed. I am disappointed but not despondent.

The baffling and frustrating thing about being a junior resource company is the technical performance of a stock can be totally disconnected from the fundamental performance of the business, as you mentioned with Anaconda over the 2011-2016 period.

Here we are making all these excellent strides forward in building a business that will be a platform for growth for many years to come and the stock market is ambivalent. We are going to have to work very hard to raise the profile of our securities. We're going to have to continue to tell the market what we're going to do, tell the market when we've done it, and then tell it again! We will continue to build momentum behind our story and we hope that will translate into market valuation

On the one hand, I'm very happy to just continue to get on with what we do. On the other hand, we need our stock to perform if we're going to continue to make strategic investments and grow this business organically and through acquisition.

Great things are happening on the fundamental side and now we have to help the market understand it and get behind us, so that we have the currency to do what we need to do.

You mentioned the rollback, Peter. I can tell you that it is immensely frustrating to do merger deals when your share price is trading for pennies. Even a $10,000 open-market trade can shift your market cap by 10-15%. That makes it all the more difficult to line up a deal.

I understand why certain groups of investors resist a rollback, but I think the virtues of the rollback will ultimately outweigh the concerns. We intend to do a share consolidation at some point. It will not be today or tomorrow. We will do it in the context of something that is strategically important.

We've got a lot of work to do both on the operating side and in the capital markets. It's frustrating to not have enough investors understand the good things that are going on, but we intend to build a favorable profile based on execution and transparency, not just promotion. We will get the story out there.

Peter: Well, it continues to be a tough time for some in the junior mining space. I'm headed off to the Sprott Symposium next week, so I can check the pulse of things. It may take a while for things to come back. The issuers will be back quickly enough, but I wonder about the audience.

Jonathan: It is an interesting thought, Peter. As I said, much of a stock's performance is unrelated to the fundamental performance of the operations. This is especially true for junior mining companies. We've seen many examples where a name-brand investor can impact a stock much more than the fundamental attributes of the business.

There are only a handful of these name-brand investors so when they put money into a particular company, the stock can start to run right away -- "If Mr. X is behind it, then it must be good." That's just the world we live in.

Stock performance is highly technical and with 380 million shares outstanding, we are vulnerable to some negative effects in the market and we have to correct that.

Peter: My sense is that Anaconda’s stock is quite illiquid. Is there a way that the company can improve its trading profile?

Jonathan: I am not interested in market management. It’s not within my skill-set and I am not charming enough for baseless promotion. I will let our fundamental story evolve and when the time is right I will sing our virtues from the rooftops.

Over the 5 years since I came back to Toronto and started to re-focus on the mining sector, my friends have heard me say, "Short any mining stock that's run by an ex-investment banker because mining is never as easy as bankers think it is."

Yet, here I am – an investment banker and Chairman of Anaconda! Fortunately, my fellow Board members and executive team are deeply knowledgeable and experienced. Dustin has done a great job and I believe our operations team will prove themselves in time to be the best narrow vein small mine operators in Canada.

We will make money where others can’t. I am 100% confident in that. If it takes five years for the world to understand that, then so be it. Of course, I want my stock to appreciate every day, but it is more important that our team focuses on building an exceptional business than worrying about the daily vicissitudes of the secondary markets.

Peter: And the significance of that prize is very great, Jonathan. Anaconda is already one of the most award-winning teams that I've ever encountered. I would not put it past you guys to find something else out there that fits in very well into the existing framework.

Jonathan: M&A is puzzle-making. You have to find the piece that works with the pieces you already have. We are constantly reviewing and assessing opportunities. These aren’t always engaged dialogues, but sometimes they are. We are open to any intelligent conversation that will help us advance our business and reward our shareholders.

At present, we are very focused on advancing Goldboro, advancing Argyle, and continuing to run our processing facility efficiently. If we can do that, then we've got something very worthwhile.

Peter: Well, thank you very much for the intelligent conversation here today, Jonathan.

Jonathan: It’s been a pleasure and a privilege, Peter. Thank you very much for the conversation. I look forward to the next one.

Please note that I was not compensated to prepare this material. This interview was recorded on July 20, 2017. The transcript was reviewed by the company.

http://www.stockhouse.com/companies/bullboard/t.anx/anaconda…

[IQ4U]

Antwort auf Beitrag Nr.: 55.601.731 von bigyawn am 26.08.17 01:47:06

Danke Dir!

Das ist ja eine tolle Entwicklung insgesamt gesehen...

[bigyawn]

Anaconda Mining loses $3.6-million in fiscal 2017

2017-08-25 08:10 ET - News Release

Mr. Dustin Angelo reports

ANACONDA MINING SELLS 15,562 OUNCES TO GENERATE $25.7M OF REVENUE AT THE POINT ROUSSE PROJECT IN FISCAL 2017

Anaconda Mining Inc. has released its financial and operating results for the fiscal year ended May 31, 2017. Full financial statements and management discussion and analysis documents can be found at SEDAR and the company's website.

The company is also filing its annual information form for the year ended May 31, 2017, and the technical report prepared in accordance with National Instrument 43-101 for the company's Goldboro project entitled "Updated Mineral Resource Estimate Technical Report for the Goldboro Property, Guysborough, Nova Scotia, Canada," dated Feb. 28, 2017. Both documents will be available today under the Anaconda Mining's profile at SEDAR.

Highlights for the year ended May 31, 2017

Anaconda achieved gold sales of 15,562 ounces during the fiscal year ended May 31, 2017, in line with revised midyear guidance for fiscal 2017 of 15,500 to 16,000 ounces.
The company generated $25.7-million in revenue at an average sale price of $1,651 ($1,248 (U.S.)) per ounce, a 5-per-cent increase in revenue from the 2016 fiscal year and in line with revised midyear guidance for fiscal 2017 of $1,625 to $1,675.
The Pine Cove mill increased throughput by 8 per cent to 1,223 tonnes per day compared with the previous fiscal year, while maintaining an increased grade profile for the second half of fiscal 2017 in line with midyear revised guidance.
The company generated a further $900,000 from the sale of waste rock as aggregate from its Pine Cove pit.
As at May 31, 2017, the company had cash and cash equivalents of $2.5-million, net working capital of $3.3-million, and additional available liquidity of $1-million from an undrawn revolving line of credit facility.
Operating cash cost per ounce sold at the Point Rousse project for the year ended May 31, 2017, was $1,126 ($856 (U.S.)), in line with revised midyear guidance for fiscal 2017 of $1,100 to $1,175.
All-in sustaining cash cost per ounce sold, including corporate administration, capital expenditures and exploration costs for the year ended May 31, 2017, was $1,735 ($1,318 (U.S.)), in line with revised midyear guidance for fiscal 2017 of $1,675 to $1,750.
At the Point Rousse project, earnings before interest, taxes, depreciation and amortization for the year ended May 31, 2017, were $8,010,964.
On a consolidated basis, EBITDA for the year ended May 31, 2017, was $6,311,777.
Net loss for the year ended May 31, 2017, was $3,602,188 primarily due to higher non-cash charges including depletion and depreciation expense and deferred tax expense.
Additions of property, mill and equipment for the year ended May 31, 2017, were $4.2-million. Key items included tailings and polishing pond construction of $1.9-million, mill equipment upgrades of $700,000, production stripping asset additions of $1.1-million, and permitting/legal costs of $100,000 related to the construction of the dock facility to enable to sale of waste rock as an aggregates product.
The acquisition of Orex Exploration Inc. resulted in the addition to the company's exploration and evaluation assets of $14.9-million for the Goldboro project in Nova Scotia.
Approximately $3.3-million was spent on exploration for the year ended May 31, 2017, which included drilling, trenching, mapping and mineral resource estimates.

President and chief executive officer Dustin Angelo stated: "Fiscal 2017 was another successful year for Anaconda Mining due to the dedication and commitment of our employees and contractors. The Point Rousse project continued to be the steady cash flow contributor that has supported all of our corporate objectives to date, generating over $8.0-million in EBITDA, a 21-per-cent increase compared with fiscal 2016. The Pine Cove mill, the cornerstone of our operation, attained a new record annual throughput of over 420,000 tonnes, a 9-per-cent increase from fiscal 2016. Year over year, the mill has increased throughput levels through consistent operations, automation and an improved preventative maintenance program. Together with the recently added port facility and plenty of tailings storage capacity, we have built up a tremendous amount of valuable infrastructure that serves as our platform for growth in Atlantic Canada. Because of our infrastructure, we were able to make our first significant corporate acquisition, the Goldboro project in Nova Scotia, during the fourth quarter. Going forward, we are focused on demonstrating the mineral resource growth potential at Point Rousse and Goldboro while advancing Goldboro towards production. Anaconda is well positioned to leverage the infrastructure at Point Rousse to grow and develop these and other potential projects, extending the pipeline of resources available and the life of the operations."

Looking ahead to 2018, the company is projecting to produce and sell approximately 15,500 ounces of gold. Production in the first three quarters will be from the Pine Cove pit and will transition to the Stog'er Tight pit early in the 2018 calendar year. Operating cash costs for the upcoming year are projected to be in the range of $1,000 to $1,050 per ounce of gold sold, lower than historical levels of $1,100 over the past three years as the company continues to focus on cost savings and operational efficiencies.

CONSOLIDATED RESULTS SUMMARY -- FOR THE PERIODS ENDED MAY 31, 2017 AND 2016

Financial results Q4 2017 Q4 2016 FY 2017 FY 2016 FY 2015

Revenue $7,722,202 $6,789,532 $25,696,629 $24,361,471 $22,234,071
Cost of operations, including
depletion and depreciation 6,182,586 6,432,303 24,790,421 22,791,735 20,237,595
Mine operating income 1,539,616 357,229 906,208 1,569,736 1,996,476
Net (loss) income (1,890,260) (456,641) (3,602,188) (1,356,233) (1,835,071)
Net (loss) income per share
-- basic and diluted (0.01) (0.00) (0.02) (0.01) (0.01)
Cash generated from operating activities 3,172,938 2,029,157 4,782,426 5,387,441 3,085,137
Capital investment in mine development,
property, plant and equipment (225,612) (891,268) (3,414,163) (4,813,998) (2,556,249)
Average realized gold price per ounce 1,658 1,618 1,651 1,520 1,279
Operating cash costs per ounce sold 699 1,231 1,126 1,091 1,086
All-in sustaining cash costs per ounce sold 1,066 1,733 1,735 1,648 1,370
Operational results
Ore mined (t) 92,167 98,214 432,081 397,821 321,532
Waste mined (t) 386,387 634,746 2,197,251 2,421,880 1,762,312
Strip ratio 4.2 6.5 5.1 6.1 5.5
Ore milled (t) 107,956 104,163 423,204 387,694 343,178
Grade (g/t Au) 1.49 1.26 1.33 1.5 1.72
Recovery (%) 86% 85% 85% 85% 83%
Gold ounces produced 4,442 3,606 15,566 15,818 15,228
Gold ounces sold 4,658 4,196 15,562 16,023 15,821

Restatement of prior period financial information

As part of the preparation of the audited consolidated financial statements for the year ended May 31, 2017, the company undertook a comprehensive review of the capitalization and units-of-production depletion calculations for its production stripping asset and property, mill infrastructure and equipment, and deferred taxes, and discovered that certain errors had been made. The adjustments are non-cash in nature, and do not impact any production, historical production and operational results.

The company is committed to improving its control environment and internal control over financial reporting, and has committed to resolving the material weaknesses leading to the errors. The company's new chief financial officer, who has strong experience with public operating mining companies and the related regulatory and risk management requirements of being a public company in Canada, is currently assessing the review processes related to financial reporting, as well as management oversight and tone at the top, and mitigating controls.

The amounts of each adjustment and a reconciliation between the previously published statement of financial position as at May 31, 2015, and May 31, 2016, as well as the statement of comprehensive loss for the year ended May 31, 2016, have been presented in note 4 of the audited consolidated financial statements.

Annual 2017 review

Anaconda sold 15,562 ounces of gold during the 2017 fiscal year compared with 16,023 ounces sold in fiscal 2016. The decrease was attributable to a decrease in grade of 11 per cent, which was partially offset by 9 per cent higher throughput, with 423,204 tonnes of ore being processed during the year, up from 387,694 tonnes in fiscal 2016.

The company mined 432,081 tonnes of ore during the 2017 fiscal year, a 9-per-cent increase over the prior year. The increased production is notable given weather-related challenges experienced in the fourth quarter, which limited operation to 58 days. As the mine operations advance to lower levels of the Pine Cove pit, the strip ratio continues to decrease as expected, down to a 5.1 waste to ore ratio, down from 6.1 in 2016. This is expected to continue into the 2018 fiscal year, as the company expects to deplete the Pine Cove pit by the end of the calendar year, when it will transition production to its Stog'er Tight deposit.

Increased mill throughput was driven by the continued strong mill availability throughout the 2017 fiscal year, which included a 98-per-cent availability rate in the fourth quarter. Preventative maintenance continues to be the focus, which will assist in maintaining higher throughput into the 2018 fiscal year. The company has also introduced a new furnace in its refinery, which is now operational, and is expected to contribute to optimized recovery rates, lower costs and safer operations.

In September of 2016, the company executed an agreement with a third party to mine, crush and ship 3.5 million tonnes of the company's surplus stockpile and in situ waste rock as an aggregates product for a project located on the eastern seaboard of the United States. Under the agreement, which is expected to last approximately 14 months, Anaconda has granted a right to Shore Line Aggregates (SLA) to mine, crush and ship an aggregates product made from Anaconda's surplus stockpiled rock and in situ rock for 60 cents per tonne. The company generated other income of $938,089 from this agreement in the 2017 fiscal year.

The company also continued to expand its footprint over prospective mineral properties in proximity to its mine and mill infrastructure. In addition to the transformational acquisition of the Goldboro project, the company in November, 2016, acquired the Jackson's Arm property on the Northern Peninsula of Newfoundland and staked a further 5,050 hectares of contiguous mineral lands, which is collectively known as the Great Northern project. The company also acquired 350 hectares referred to as the Tilt Cove property in November, 2016, located 60 kilometres east of the company's Point Rousse project.

For the year ended May 31, 2017, the company generated $25,696,629 in revenue, a 5-per-cent increase from the year ended May 31, 2016. The comparatively higher revenue was primarily a result of a 9-per-cent increase in mill throughput and a 9-per-cent increase in realized gold price from $1,520 to $1,651 per ounce sold. The company also generated other revenue of $938,089 from the sale of waste rock to be used as aggregates, compared with nil in fiscal 2016.

For the year ended May 31, 2017, cost of operations was $24,790,421, yielding a mine operating income of $906,208 compared with fiscal 2016, which generated cost of operations of $22,791,735, yielding a mine operating income of $1,569,736. Mine operating income was negatively impacted as a result of non-cash charges for depletion and depreciation expense of $1,944,088. Depletion and depreciation expense, which is calculated using the unit-of-production methodology, increased due to a decline in reserve base. Mill operations expense increased by $143,983 largely due to increased maintenance costs and project administration increased by $89,976 for personnel costs. This was partially offset by a decline in mining costs of $59,904, logistics expenses of $55,106 and net smelter return expenses of $64,351. Mining costs were lower due to purchase discounts received from suppliers. Logistics expenses were reduced due to a change in refiner which resulted in cost savings. NSR expenses only relate to Stog'er Tight production as the obligation for Pine Cove pit was extinguished in fiscal 2016.

Corporate administration expenses consist of consulting/professional fees, corporate salaries/benefits, office and general expenses, travel, and regulatory related costs. For the year ended May 31, 2017, administrative expenses totalled $2,637,276 and in line with $2,630,745 in fiscal 2016.

Finance expenses of $176,882 include costs related to the gold prepayment agreement, accretion on the company's decommissioning liability and interest paid on loans.

Deferred income tax expense was $2,475,000 compared with a deferred tax recovery of $33,000 in fiscal 2016. The expense resulted from a $2.52-million increase in unrecognized portion of the deferred tax asset.

Net loss for the year ended May 31, 2017, was $3,602,188 compared with net loss for the year ended May 31, 2016, of $1,356,233. The increase in net loss is primarily due to a decrease in mine operating income of $663,528, increase in deferred tax expense of $2,508,000 partially offset by other revenue of $938,089.

Fourth quarter 2017 review

Despite challenging weather conditions impacting mining rates, Anaconda achieved record quarterly gold sales of over 4,600 ounces at the Point Rousse project. The Pine Cove mill maintained strong levels of productivity due to continued maintenance and availability at 98 per cent during the fourth quarter of fiscal 2017.

Anaconda sold a record 4,658 ounces of gold in the fourth quarter at an average sales price of $1,658 per ounce, an 11-per-cent increase in gold ounces sold over Q4 2016. The company generated $7.72-million in gold sales revenue in the fourth quarter ended May 31, 2017, an increase of 14 per cent over the corresponding quarter of 2016.

Mining operations were challenged in the fourth quarter of 2017 due to snowfall and related weather conditions, limiting operating days to 58 days. Mine production was 92,167 tonnes of ore and 386,387 tonnes of waste for a strip ratio of 4.2:1 waste to ore. Tonnes mined were significantly lower than the fourth quarter of fiscal 2016, partly due to weather conditions, but also significantly impacted by a lower stripping ratio profile of 4.2:1, compared with 6.5:1 in the corresponding period of 2016. Due to inclement weather conditions, the company ensured appropriate focus on monitoring final pit walls and dewatering of the open pit to maintain ore production to the mill in the fourth quarter and into the next fiscal year.

The Pine Cove mill operated at an availability rate of 98 per cent, achieving an average run rate of 1,200 tonnes per operating day compared with 1,197 tonnes per operating day in the fourth quarter of fiscal 2016. The Pine Cove mill processed 107,956 dry tonnes of ore during the quarter compared with 104,163 dry tonnes of ore in the similar period of fiscal 2016, at relatively similar recovery rates over the comparative periods. Average feed grade during the quarter was 1.49 grams per tonne compared with 1.26 grams per tonne in the similar period of fiscal 2016, an 18-per-cent increase. Preventative maintenance continues to be a focus to maintain consistent levels of production which included cone crusher liner changes during the fourth quarter of fiscal 2017. A new refinery is scheduled to be installed in fiscal 2018, with the aim of optimizing recovery rates, reducing related costs and providing improved safety conditions in the refining process.

About Anaconda Mining Inc.

Anaconda Mining is focused in the mining-friendly and prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The company operates the Point Rousse project located in the Baie Verte mining district in Newfoundland, Canada, comprising the Pine Cove open-pit mine, Stog'er Tight deposit, the fully permitted Pine Cove mill and tailings facility, a new gold discovery referred to as Argyle, and approximately 6,300 hectares of prospective property. Anaconda is also developing the recently acquired Goldboro project in Nova Scotia, a high-grade mineral resource, with the potential to leverage existing infrastructure at the company's Point Rousse project.

We seek Safe Harbor.

© 2017 Canjex Publishing Ltd. All rights reserved.

[IQ4U]

Antwort auf Beitrag Nr.: 55.598.971 von stephansdom am 25.08.17 16:01:53

Da stimme ich Dir vollkommen zu!

Deshalb steht diese motherf.....g Aktie auch immer noch bei 0,07 CAD!

Das entspricht einer MK in Höhe von 29,05 Mio. CAD oder 19,4 Mio. EUR

So sieht´s mal aus!

Aber keine Sorge: Stay Long - stay cool!

Das wird nun anders werden mit den neuen Förderstätten...

[stephansdom]

Antwort auf Beitrag Nr.: 55.570.219 von stephansdom am 21.08.17 19:49:37

415 Mio Shares ist schon ein Klotz!!!

[stephansdom]

Antwort auf Beitrag Nr.: 55.569.262 von IQ4U am 21.08.17 17:44:01

heute sollte man Klondike haben :-)

[IQ4U]

Interview with our Mr. Allan Cramm by Peter @Newton

@Newton Hello CEO.CA! It is my pleasure to share some #Teasers from a couple interviews that I did with key people in $ANX. One is Mr. Allan Cramm, VP Innovation & Development. The other is Mr. Jonathan Fitzgerald, Chairman of the Board of Directors. I had 3 hours of interview between the two of them and I look forward to making public the transcripts of these conversations. Thanks very much Jonathan and Allan for your time and allowing me to share this material.



@Newton Read on for an excerpt from my interview with #AllanCramm $ANX. I believe the first bit is from the first 5 minutes of the call and the second bit is from the 30 minute mark. They tie together nicely to give you a sense for who Allan is and what that means for the company... Allan Cramm: My father and grandfather and great grandfather actually worked in mines in the area. Have a look for a place called Betts Cove on the map -- about 50-60 kilometers from here. My great-grandfather worked there. My father & Grandfather at Tilt Cove, a large base metal mine on the other end of this geological belt. ... Peter Bell: From the early days, I always thought that Anaconda was not your typical junior mining company. To actually be in production and stay in production through 2008-2017 always impressed me. And to raise such little equity from 2011 to 2016 is just amazing leadership. I always felt that Anaconda was run more like a major mining company. To hear you describe history of mining in the region helps me understand that better. And the innovation aspect you have described -- down to the documentation of training. Very sophisticated stuff that is important for success in mining. Where does that corporate culture come from? Allan Cramm: Well, I look at myself and I've always had an interest in innovation. Just doing things differently. Maybe it comes from growing up with a father that was always making up interesting tools and jigs in his garage. A person's interest in innovation is like a seed, but it's not going to grow on its own. It needs the right conditions. If a seed is capable of growing a tomato is not given the right growing conditions, then it is not going to produce a tomato. In our situation, we had the right combination of corporate leadership, corporate interest, and conditions on the ground at site. Somehow, everything just came together at Pine Cove and we now have a very fertile environment on which to grow innovation. It goes from top to bottom. We're all part of the process. Some of us are the fertilizer, the seed, the water, or we're the sun. Everybody's got to a role to play. Although not everyone are innovative, they are often supportive of innovation. I can't play an instrument and I don't understand why. I'd like to, but that's not meant for me but I like music. For me, I'd like to go out in my shed and work on all kinds of things.

@Newton Check out the closing moments of my hour-long interview with #JonathanFitzgerald $ANX. #NewtonInterviews -- Liquidity in the secondary markets. Peter: My sense is that Anaconda’s stock is quite illiquid. Is there a way that the company can improve its trading profile? Jonathan: I am not interested in market management. It’s not within my skill-set and I am not charming enough for baseless promotion. I will let our fundamental story evolve and when the time is right I will sing our virtues from the rooftops. Over the 5 years since I came back to Toronto and started to re-focus on the mining sector, my friends have heard me say, "Short any mining stock that's run by an ex-investment banker because mining is never as easy as bankers think it is." Yet, here I am – an investment banker and Chairman of Anaconda! Fortunately, my fellow Board members and executive team are deeply knowledgeable and experienced. Dustin has done a great job and I believe our operations team will prove themselves in time to be the best narrow vein small mine operators in Canada. We will make money where others can’t. I am 100% confident in that. If it takes five years for the world to understand that, then so be it. Of course, I want my stock to appreciate every day, but it is more important that our team focuses on building an exceptional business than worrying about the daily vicissitudes of the secondary markets. Peter: And the significance of that prize is very great, Jonathan. Anaconda is already one of the most award-winning teams that I've ever encountered. I would not put it past you guys to find something else out there that fits in very well into the existing framework. Jonathan: M&A is puzzle-making. You have to find the piece that works with the pieces you already have. We are constantly reviewing and assessing opportunities. These aren’t always engaged dialogues, but sometimes they are. We are open to any intelligent conversation that will help us advance our business and reward our shareholders. At present, we are very focused on advancing Goldboro, advancing Argyle, and continuing to run our processing facility efficiently. If we can do that, then we've got something very worthwhile. Peter: Well, thank you very much for the intelligent conversation here today, Jonathan. Jonathan: It’s been a pleasure and a privilege, Peter. Thank you very much for the conversation. I look forward to the next one.

http://www.stockhouse.com/companies/bullboard/t.anx/anaconda…

[IQ4U]

RE:Have a question for the "Unknown Geologist" that hopefully

If you guys want to speak with anybody who's really knowledgeable about the Goldboro property then I recommed you get in touch with Mr. Jacque Levesques (CFO of Orex). He been the longest serving director with the company and knows every inch and has all the useful insight regarding the property, including past drilling tests.

I spoke with him a few times in the past and I trust 100% what he had told me ... in other words my BS detector didn't go off.

We definitly have a winner with ANX. What will make them big will be the future Golboro mine development. Who know if not another big miner doesn't step in to merge or buy ANX one day... ;til then we will enjoy a nice and steady sp increase. I expect this to easily rise above 25 cents/sh by this time next year if ANX management move ahead and produce concrete development plans to buidl a mine there.

http://www.stockhouse.com/companies/bullboard/t.anx/anaconda…

[IQ4U]

Interview with our Mr. Allan Cramm by Peter @Newton

@Newton Hello CEO.CA! It is my pleasure to share some #Teasers from a couple interviews that I did with key people in $ANX. One is Mr. Allan Cramm, VP Innovation & Development. The other is Mr. Jonathan Fitzgerald, Chairman of the Board of Directors. I had 3 hours of interview between the two of them and I look forward to making public the transcripts of these conversations. Thanks very much Jonathan and Allan for your time and allowing me to share this material.

@Newton Read on for an excerpt from my interview with #AllanCramm $ANX. I believe the first bit is from the first 5 minutes of the call and the second bit is from the 30 minute mark. They tie together nicely to give you a sense for who Allan is and what that means for the company... Allan Cramm: My father and grandfather and great grandfather actually worked in mines in the area. Have a look for a place called Betts Cove on the map -- about 50-60 kilometers from here. My great-grandfather worked there. My father & Grandfather at Tilt Cove, a large base metal mine on the other end of this geological belt. ... Peter Bell: From the early days, I always thought that Anaconda was not your typical junior mining company. To actually be in production and stay in production through 2008-2017 always impressed me. And to raise such little equity from 2011 to 2016 is just amazing leadership. I always felt that Anaconda was run more like a major mining company. To hear you describe history of mining in the region helps me understand that better. And the innovation aspect you have described -- down to the documentation of training. Very sophisticated stuff that is important for success in mining. Where does that corporate culture come from? Allan Cramm: Well, I look at myself and I've always had an interest in innovation. Just doing things differently. Maybe it comes from growing up with a father that was always making up interesting tools and jigs in his garage. A person's interest in innovation is like a seed, but it's not going to grow on its own. It needs the right conditions. If a seed is capable of growing a tomato is not given the right growing conditions, then it is not going to produce a tomato. In our situation, we had the right combination of corporate leadership, corporate interest, and conditions on the ground at site. Somehow, everything just came together at Pine Cove and we now have a very fertile environment on which to grow innovation. It goes from top to bottom. We're all part of the process. Some of us are the fertilizer, the seed, the water, or we're the sun. Everybody's got to a role to play. Although not everyone are innovative, they are often supportive of innovation. I can't play an instrument and I don't understand why. I'd like to, but that's not meant for me but I like music. For me, I'd like to go out in my shed and work on all kinds of things.

@Newton Check out the closing moments of my hour-long interview with #JonathanFitzgerald $ANX. #NewtonInterviews -- Liquidity in the secondary markets. Peter: My sense is that Anaconda’s stock is quite illiquid. Is there a way that the company can improve its trading profile? Jonathan: I am not interested in market management. It’s not within my skill-set and I am not charming enough for baseless promotion. I will let our fundamental story evolve and when the time is right I will sing our virtues from the rooftops. Over the 5 years since I came back to Toronto and started to re-focus on the mining sector, my friends have heard me say, "Short any mining stock that's run by an ex-investment banker because mining is never as easy as bankers think it is." Yet, here I am – an investment banker and Chairman of Anaconda! Fortunately, my fellow Board members and executive team are deeply knowledgeable and experienced. Dustin has done a great job and I believe our operations team will prove themselves in time to be the best narrow vein small mine operators in Canada. We will make money where others can’t. I am 100% confident in that. If it takes five years for the world to understand that, then so be it. Of course, I want my stock to appreciate every day, but it is more important that our team focuses on building an exceptional business than worrying about the daily vicissitudes of the secondary markets. Peter: And the significance of that prize is very great, Jonathan. Anaconda is already one of the most award-winning teams that I've ever encountered. I would not put it past you guys to find something else out there that fits in very well into the existing framework. Jonathan: M&A is puzzle-making. You have to find the piece that works with the pieces you already have. We are constantly reviewing and assessing opportunities. These aren’t always engaged dialogues, but sometimes they are. We are open to any intelligent conversation that will help us advance our business and reward our shareholders. At present, we are very focused on advancing Goldboro, advancing Argyle, and continuing to run our processing facility efficiently. If we can do that, then we've got something very worthwhile. Peter: Well, thank you very much for the intelligent conversation here today, Jonathan. Jonathan: It’s been a pleasure and a privilege, Peter. Thank you very much for the conversation. I look forward to the next one.


Quelle: http://www.stockhouse.com/companies/bullboard/t.anx/anaconda…

[IQ4U]

More from Peter @Newton on our Chairman & VP Innovations

@Newton Another essential clip from my interview with $ANX Chairman #JonathanFitzgerald. He took on this role after Anaconda merger with Orex Exploration $OX. Lots of history there and Jonathan shared some of it in our interview. Read on for #teaser #NewtonInterviews: Peter: If we go back to the beginning, why did Nova Scotia capture your interest? Jonathan: In early 2014, a group of colleagues and I went through the arduous process of reviewing every gold project in North America with a global resource of 1 million ounces or less. We felt that smaller projects offered two advantages: a discounted valuation versus large projects and, of course, a lower purchase price. The database included approximately 400 projects, though we quickly eliminated a number by employing a relatively simple screening mechanism. We wanted to avoid projects that had significant binary risks – risks that could imperil a project such as regulatory, environmental or social risk factors that could not be assessed with any reasonable predictability. We avoided projects that had highly convoluted ownership profiles or NSRs greater than 3%. In simple terms, we didn’t want a scenario where one party had significant upside while we, as shareholders, bore dis-proportionate risk. We didn't like projects that were partially owned, vended in, or milestone-based. We wanted to be in control of our destiny. Needless-to-say, the 400 potential projects were soon reduced to a much more manage-able number. We got down to 20 or 30 projects that were interesting and we started to examine those projects in great detail. We quickly recognized that there was a concentration of these projects in Nova Scotia. We began with the immodest ambition of acquiring all of the Nova Scotia projects and implementing a spoke-and-wheel strategy wherein multiple projects would deliver ore to a central processing facility. Peter: How did you go from this grand plan to a more modest investment in a single project? Jonathan: The interesting thing about doing M&A in the junior mining sector is that you really need a meeting of the minds in order to be successful. You need two counter-parties who share a vision, ambition, and willingness to work together. This condition was elusive. Too often you get one side with a reasonable sense of relative-value while the other possesses a fantastical sense of its own worth -- in the absence of a shared sense of relative-value it can be difficult, if not impossible, to bridge the gap and strike a viable deal. I believe that a successful transaction must offer an equitable outcome for both sides – even in a distressed sale. As mentioned earlier, I started looking at the Nova Scotia mining environment in 2014. At that time, the region was orphaned in the capital markets, despite the presence of a number of projects with good grade and small but economically viable deposits. Around that time, we also saw the financial demise of Ressources Appalaches Inc., which owned and operated the Dufferin Mine, and that situation adversely affected the perception of Nova Scotia mining. The Nova Scotia mining scene was waiting for someone to serve as a catalyst… and that catalyst was Atlantic Gold. In a short period of time, the Nova Scotia mining scene went from moribund to highly active. Resource Capital Group acquired Dufferin from its creditors and added the Tangier and Forest Hill mines. Osprey Gold acquired the Goldenville deposit and followed with the acquisition of Lower Seal Harbor, Gold Lake, Miller Lake and, most recently, the Caribou gold mine. NS Gold continues to own and support its Mooseland project, though it does not possess the acquisition ambitions of the others. Atlantic Gold’s leadership came at a time when the junior resource sector was gaining some stability after many years of weak investor interest and poor liquidity. This brought renewed attention to Nova Scotia gold mining. With this attention came ambition, capital and competition to acquire assets. I wish I had moved quicker and with greater ambition, but that sentiment comes with the knowledge of hindsight. Our analysis suggested that Goldboro had the best combination of grade, known resource and resource growth potential in the region. While we were unable to execute a roll-up strategy we were able to invest in the best of the Nova Scotia gold assets. The other projects have many virtues but none had the potential of Goldboro in our opinion. Peter: What was attractive about Goldboro? Jonathan: Nova Scotia became our focus pretty early because we saw value. We saw the right environment for developing a project. We saw impressively good grades with decent volume and, most persuasively, we saw very opportunistic pricing. They were truly orphaned projects. Goldboro was owned by Orex, which was a Quebec-based business with a Quebec-based shareholding that had struggled for many years to advance the Goldboro project. This is not a criticism of the incumbent management but, rather, a consequence of a very unfavorable capital market environment. It was a project that had resource, volume, and grade, but it did not have management or capital. It was very much an asset, not a business. It wasn’t operating. It wasn't exploring. It wasn't doing anything other than fighting for its survival. All that being said, we believed that, of all the properties in Nova Scotia, Goldboro had the best grade, the largest resource, and the cheapest price. The Goldboro investment represented a tremendous opportunity and reflected a simple thesis: we believed that a project offers its best risk-reward profile when it is substantially developed, but not yet in production. As they say in telecom finance, last-mile money has the optimal risk-reward profile. We wanted to be the capital that would facilitate a project going from resource in the ground to operations and cash flow in the bank. I partnered with a U.S. family office, Falcon Capital, that had a very sophisticated view of gold as an investment asset and was looking at numerous investment strategies to monetize that view. The pre-production profile that I described offered one technique to make a leveraged long-term investment in gold. Falcon Capital made the investment in Orex in the fall of last year. It was relatively modest investment given Orex’s low market capitalization. The intention was to get in, kick the tires, and figure out what we can do with this valuable but unappreciated asset. The Orex leadership had worked very hard to keep the company alive for the prior 10 years, but really hadn't been able to accomplish much in an operating sense. We saw this jewel and wanted to find a way to shine it up and make it more valuable. Peter: Thank you so much, Jonathan. What a fascinating story!

@Newton And you can read on for the final moments of my 2-hour interview with #AllanCramm $ANX. An exceptional interview with the VP of Innovation & Development at Anaconda Mining! Allan Cramm: I think that eventually we'll be on the big ice surface at some point and people will really see what we're doing. Peter Bell: And in the meantime, keep it under control and just deliver. You mentioned Point Rousse has been in production for nine years of production -- how long have you been involved? Allan Cramm: I was the first employee here, actually. Peter Bell: You yourself were the first employee at the Point Rousse project for Anaconda Mining? Allan Cramm: Yes. My connection was that I was the General Manager for Richmont Mines when we processed a bulk sample from Point Rousse back in 2004. That was my first introduction to anybody with Anaconda Mining. In 2006, Richmont sold the operation, and I had a couple opportunities. I chose to come work with Anaconda and I don't regret it. We've had a lot of fun in the last 8-10 years, particularly since 2010. Every year is getting better and better. Peter Bell: Wow, I didn't realize that you were the first employee at the current incarnation of Point Rousse. That is great, thank you so much. We're approaching the two hour mark and I am very grateful for all your time here today. Allan Cramm: I appreciate it too, Peter.

@Newton Read on for another excerpt from my interview with #AllanCramm $ANX. This dialogue occurred around the 90 minute mark in the interview. Peter Bell: That's right. In the same way that the open pit gives you a large screen TV, some of these shafts are more like a mobile phone. Allan Cramm: Except they didn't have phones, did they Peter? Sometimes, what's old is new again. It's happening all around us today. The taxi-cab has gone to Uber. It's the same vehicle, same function, but now done radically differently. Peter Bell: I'm holding my breath for Uber to arrive in Baie Verte! Allan Cramm: It's not here yet. I've used it elsewhere and it's just a like a taxicab. It's an example of someone thinking there has to be a different way or a better way. We're out there trying to do things better and faster. Peter Bell: And all the disruption that ambition brings along. Just to mention it again -- you have the potential for good tonnage of ore from Romeo and Juliet with mining at intervals along strike. Allan Cramm: Yes, and we have a processing plant in the area with capacity. Peter Bell: Right. Allan Cramm: You need an economic way to get it out from the mine, to get it to a plant, and to get it processed. If you don't have a plant, then developing a better way to mine the deposit is probably not your first priority. Peter Bell: And that puts you in a unique position where you can invest in R&D to figure out how to do it. Allan Cramm: That's right. We had the deposit, we had the mill, and the mill has some surplus capacity. It probably wouldn't require any additional people in the mill to use that capacity. If we could source another 200-400 tonnes a day of 8-10 gram material, then it would have a pretty significant impact on the economics. Peter Bell: Would that tonnage displace stuff at the front end of the mill, or would that be able to go into the back end based on the higher grade? Allan Cramm: It depends, but some of it could go in the back end directly. When we first started here, we did some whole ore leaching because of issues in the front end and we were getting good leach recoveries on the back end. Peter Bell: Really? Allan Cramm: Yes. We've learned a lot since then, in terms of how to grind the rock. We're taking our material down to 20 microns in the back end of the grind. Peter Bell: Wow. Allan Cramm: Yes, it is very small. It is basically the diameter of a white blood cell. Peter Bell: That's a lot of grinding! Allan Cramm: You know, people couldn't even measure that in the plant 20 years ago. Peter Bell: What progress, eh? Allan Cramm: It's amazing. I think we have facilitated a group of people that think about doing things differently and I expect everybody to be thinking like that. Everybody will have some good ideas going forward in how we can do things around here and I want to hear them. Peter Bell: Good for you, Allan. You are the spirit of Anaconda! I can't wait for the day when you're mining one of these narrow veins and get to a point where the vein seems to split or something unexpected that suggests much richer mineralization. As you said, most discoveries in the area were made by following up on surface showings. Allan Cramm: Yes, that's right Peter. A little bit earlier on in our discussion, we talked about the relationship between the Baie Verte peninsula and the Mother Lode in California. Well, this is another similarity. There were 25 or 30 big mines that collectively put out about 8-10 million ounces of gold and went down 1.5 miles below the surface. They started with one discovery, I think it was called the Lincoln mine. That first mine that led to a different understanding and the discovery of projects like North Star, Eureka, and others.

Quelle: http://www.stockhouse.com/companies/bullboard/t.anx/anaconda…" target="_blank" rel="nofollow ugc noopener">http://www.stockhouse.com/companies/bullboard/t.anx/anaconda…