Pulling in Top
Talent and Rapidly Expanding, Inca One is on Fire in Peru's Gold Rush
VANCOUVER, BC / ACCESSWIRE / December 1, 2014 / There's no stopping Inca One Gold Corp. (TSXV:IO)
as they build on their success in the new Peruvian gold rush. The company
continues to pull in mining expertise like Jamie Polar and now Emilio Ortiz
while the busy doubling it's processing capacity this year at it's Chala One
plant in Peru.
The results are reflecting in the share price
closing at a multi year high, giving shareholders a 100% return in 2014.
The local mining climate couldn't be more
suited for Inca's ambitions. The government in Peru effectively ignited a gold
rush across South America ever since they decided to formalize informal gold
mining two years ago and Inca One moved in quickly showing how it's done. Peru
ranks as the largest gold producer where gold processing and small-scale mining
is big, big business.
Inca is currently evolving into a
processing company, with full operation anticipated to start early in the New
Year. They recently
partnered with a local ore supplier guaranteeing a stable supply of high
grade ore for processing at its plant.
The finances are in place too. In recent
days Inca closed the final $1.4 million of financing out of a planned $5.5
million to fund the expansion, which has been on-budget and on-time to date.
Processing terms mean that Inca One makes
money. They model a minimum of $250/ton operating margin with ore grades that
are over 0.8 ounces per ton. At 100 TPD at a minimum of $250/ton, Inca One is
on track to achieving $8 million in cash flow.
Attracting
Top Talent on the Way Up
The company continues to pull in valuable
expertise to the management team during its ambitious expansion phase.
In September the company signed-on
Jamie Polar as VP Development and Operations for Peru, who previously served as
Operations General Manager for Barrick Gold Corp. (ABX:TSX, ABX:NYSE).
In late November Emilio Ortiz joined as Mill Superintendent for the Chala One plant, overseeing the final stage of expansion to 100 TPD. Mr. Ortiz built his career also in Barrick Gold Corp. holding various positions since his start in 1999 including Processing Chief Operating Officer, Chief of General Processing Maintenance and as Manager of Processing.
Both both Polar and Ortiz worked at the $16 billion juggernaut Barrick Gold. The recruitment success speaks for itself, expertise of that calibre knows a winner when they see it.
Positive Shareholder Returns Are Worth An Applause
It has been a dismal year for mining exploration, and production stories stocks. The CBOE Gold Index, a dollar weighted composed of 12 companies involved primarily in gold mining and production is down 23% is a sure sign that times have been tough for diggers. In fact, you could probably count on one hand the companies that have given shareholders positive returns this year.
Here are three that stand out as shining stars
in 2014.
Nevsun Resources Ltd (NSU-TSX)(NSU-NYSE MKT), one of the most profitable copper producers in the world, was recently subject to rumours of a billion dollar takeover and has had a great year giving a solid 20% return plus dividend payments to shareholders. A billion dollars would appear to by highway robbery as the company has $520M US in working capital.
Another strong gold performer this year is Richmont Mines (TSX:RIC) which owns mines in Ontario and Quebec. The company recently showed a 38% rise in year-on-year revenue in their Q3 results at $34.2 million and also raised their guided annual gold production from 75,000 - 85,000 to 85,000 - 90,000. With results exceeding targets, it's no wonder the stock performance has been so impressive this year.
Inca One (IO-TSXv), although in a different league than these larger producers has given equally impressive returns trading at multi year highs, tackling the formalization opportunity in Peru proving that being focused to a production model is what investors are looking for. Cash Flow.
These are three companies that not only have
ploughed through the tougher metals price environment are building cash reserves,
and showing what the right expertise, steady financial management and a shrewd
strategy can achieve. Truly, a breath of fresh air.
SOURCE: Resource Reports