Company: Newlox Gold Ventures Corp
Listings : Canadian Securities Exchange, Frankfurt, US OTC
Tickers: LUX , NGO, NWLXF
Market cap at time of publication: $ 33 MCAD
Stock price at time of publication: $0.25 CAD
Business: Environmentally friendly and socially responsible gold mining
Market Size: US$180bn
ESGFIRE comment: Newlox Gold today gave a welcomed update on their latest financials. There was alot of turbulence in their stock yesterday (nov 30th) due to lacking explanation of their revenues that were a lot lower than anticipated. The company states they have had supply issues with reagent and also some construction issues for the boston plant. The company however seems confident that they soon will be up to full production at plant 1 with 6500 ounces of gold being extracted per year (this equals revenues before any cost deductions of $11,6 MUSD).
The cash cost target is approximately $600 per ounce, and the all-in cost target is sub $700 per ounce, including royalties.
For the Boston plant management expects to process 150 tonnes per day with a feed grade of +- 15 grams per tonne gold with an anticipated gold recovery of 90%. Newlox Gold expects to recover approximately 20,000 ounces of gold per year from the Boston Project. The revenues for the Boston project (before any cost deductions or royalty fees) could be as high as 28,2 million USD per year ; assuming 150 tonnes per day and 15 grams per tonne equalling 2250 grams / 72 oz per day and 200 days of productions per year (conservative estimate) .To give you as a reader an idea of the revenue potential based on a full production year with these projects alone the company could be looking at revenues .of 39,8 MUSD (however cost deductions for both plants and royalties for plant 2 are not included in this.) The first processing plant is soon ramping up to full scale, and Boston will begin commercial operations in early 2022.
Full press release below:
Vancouver, BC – TheNewswire – 1 December 2021 – Newlox Gold Ventures Corp. (“Newlox” or the “Company”) (CNSX:LUX.CN) (Frankfurt/Stuttgart:NGO) (OTC:NWLXF) is pleased to announce it has filed its quarterly unaudited financial statements and management discussion and analysis on SEDAR (www.sedar.com), and to provide an update on operations.
During the period, the Company has been ramping-up operations at its first ESG-focused artisanal tailings remediation and precious metals recovery plant (Plant 1) while also undertaking the construction of its second processing plant, the Boston Project. Newlox Gold is pleased with progress at both projects and is in a strong cash position with growing quarterly earnings.
At Plant 1, revenues have increased each month in 2021 as throughput and productivity continue to advance towards the Company’s goals. However, growing monthly productivity has not accelerated as quickly as management intended. Slower than targeted growth has primarily resulted from supply chain interruptions, which have not allowed the operations team to fully implement operational circuit adjustments inherent to the ramp-up process as quickly as would usually be possible.
The processing plant has operated at a throughput level as high as 50 tonnes per day, representing a significant increase from previous operations. However, the processing plant’s efficiency decreased at that level of throughout, requiring some adjustments to the milling procedure and changes to reagent types.
After considerable analysis, the Company’s engineers have developed new procedures to maintain efficiency at higher levels of throughput, but the availability of the necessary supplies has slowed implementation. Typical reagent suppliers in Asia have not adequately supplied the domestic market in Central America. The Company has now successfully found alternate sources of the required reagents in South America.
Although throughput growth at Plant 1 has progressed slower than expected, the operations team has made consistent monthly progress this year and operations management remain confident they will achieve the Company’s goals. Plant 1 will process 80 tonnes per day of artisanal tailings feedstock at base-case full-scale, with gold recovery expected to exceed 6,500 ounces per year.
At the Boston Project, the Company has navigated the hurdles of the pandemic and the associated global supply chain disruptions to procure the crushing infrastructure, conveyor systems, and a large ball mill. Construction activities have accelerated since the end of the wet season in November, and Company’s construction contractors anticipate project completion at approximately the end of the year.
Newlox plans to operate the new Boston mill at 150 tonnes per day with a feed grade of +- 15 grams per tonne gold with an anticipated gold recovery of 90%. All feedstock is to be provided by Newlox’s mining partners, with profits to be split evenly between the parties. The Boston Project is expected to significantly contribute to the Company’s growing productivity in 2022.
In Brazil, the Company continues to make progress on its planned expansion following the successful application of recovery and rehabilitation procedures in Costa Rica. Further information on Newlox Gold’s regional growth strategy will be provided in upcoming news releases.
We own shares of these companies personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for Educational purposes only and are not to be interpreted as tips , financial advice or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.