Bond believes gold is trading at attractive prices following a tough year and that gold equities are even cheaper.
“We’re not buying gold at an expensive price or gold equities at expensive price,” Bond said. “Valuations are cheap. The earnings have gone up. The multiples have come down. Mining equities and gold equities in particular are now generating more free cash flow than tech, and tech has always been the bastion of free cash flow, but not anymore.”
Bond said he looks for a company that has a high grade, low cost, long life asset with a fantastic management team.
“Believe it or not, there’s a Hall of Fame in mining. And so, if you’re going to go the Hall of Fame, let’s go to the Gignac family. They’ve built 20 mines globally for Newmont, Newcrest, Lundine, Barrack. These are the best in breed mine builders.”
G Mining Ventures’ key project is the Oko Gold Project in Guyana, which Bond described as “one of the true, beautiful, high-grade, low-cost mining deposits in the world.”
“It’ll be funded from cash flow and the debt they already have,” Bond said. “That will take the company from producing 175,000 ounces to 350,000 ounces within a couple of years, and onto 600,000 ounces within the next three years, and that is the operational leverage you want in the mining companies.”
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