Company: Newlox Gold Ventures Corp
ESGFIRE 5 year price target: 9,28 -13,6 CAD
Listings : Canadian Securities Exchange, Frankfurt , US OTC Pink sheets, Formal US OTC in progress
Tickers: LUX, NGO , NWLXF
Market cap at time of publication: 49,4 M CAD
Stock price at time of publication: 0,405 CAD
Number of shares fully diluted 190,390,637
Business: Environmentally friendly and socially responsible gold mining
Market Size: US$27bn – US$180bn
Newlox Gold yesterday (30/8 2021) reported their consolidated financials for the 3 months ending of June 2021.
We are happy to see that revenues s are doubling from 134 000 CAD to 266 000 CAD but what’s even more fascinating is to see that the gross margin is a staggering 64,5 % ! This certainly bodes well for the future expansion. The cash position was also very comfortable at close to 3.2 million CAD. The full report can be found here.
3 quick questions with Ryan Jackson, CEO of Newlox Gold
ESG: 1. What catalysts are you most looking forward to in the next 6 months for Newlox Gold?
Newlox Gold has four main initiatives currently underway; ramp-up of productivity at Plant 1, construction at the Boston Project, expansion into the Brazilian market, and technology development. In the next six months, we believe that the catalysts will be the achievement of full-scale operations, and the associated cashflow, at Plant 1, commissioning of the Boston Expansion Project in Costa Rica, and the announcement of our first Brazilian project.
ESG : 2. How do you view your current funding capabilities and liquidity position?
The Company currently has a strong treasury and is fully funded for the ramp-up of Plant 1 and the completion of construction and commissioning at the Boston Expansion Project. Part of our financing strategy is the expectation that the Company’s investors will exercise their convertible securities. All the warrants outstanding a firmly in the money, and we are regularly receiving wire transfers to top up the Company’s treasury. This represents financing that does not require more legal or finder’s fees and supports Newlox’s regional expansion strategy. The combination of internal cashflow and financing from warrant exercise will likely make up a large percentage of the initial funding for our medium-term plans.
ESG: 3. What do you see as the biggest challenges for Newlox Gold to reach its goal of extracting +145,000 ounces of gold in 5 years?
Newlox Gold is growing rapidly; however, it is still a small company. Because of this, human resources are the major consideration when executing our regional growth strategy. We have access to a strong pipeline of expansion projects in many countries, the major reason we picked Brazil is because the company has excellent contacts there including experienced and trustworthy engineers and geologists. Growing our team, especially in new jurisdictions, will be an exciting challenge for us but we benefit from the legions of young engineers who have trained under Dr Veiga, Dr De Tomi, and Dr Sobral over the years.
We own shares of this company personally.
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