GoGold’s current position is defined by three assets at different stages. While Parral continues to generate cash flow, Los Ricos South is moving through the final steps required ahead of construction and Los Ricos North is moving into the feasibility/permitting stage.
The Company’s focus is increasingly on how these three parts of the businesses operate together to generate shareholder value.
Project Overview
For readers new to GoGold, how do Parral and the Los Ricos projects fit together within the business today?
Parral is a significant contributor to cash on the balance sheet which will help fund the building of the next two mines in the company; Los Ricos South and Los Ricos North.
The Parral Role
Parral continues to generate cash flows. How important is that asset in shaping decisions elsewhere in the portfolio?
The cash on the balance sheet will fund the capex for Los Ricos South and the cash flow from Parral will fund the advancement of Los Ricos North to construction ready while the south is being built, so that as soon as the south is constructed the build team will move to the north and keep building.
Los Ricos South Today
Los Ricos South has moved into a more advanced stage of development. What does that stage look like in practical terms?
The company is well advanced in the final engineering stages of the construction and will break ground immediately following the permit approvals.
Industry Challenges / Transition
Moving from one producing asset into the next stage of development can introduce execution risk. What are the main challenges in managing that transition?
The company has had the benefit of time while permits have been pending. The Los Ricos South project has had more engineering done as preparatory work, than any of the previous four mines the team has built over a 30 year career in building and operating mines in Mexico.
Mexico Context
How would you characterise the current operating environment in Mexico, and how does your experience help you navigate it successfully?
Our team has been finding, advancing, and building mines in Mexico for over 30 years. We have strong contacts and local knowledge in how to navigate the local laws and bring capital to the country, and hire local talent which fosters good relations with our local communities, and state/federal governments.
Near-term Outlook
What are the key milestones to watch across Parral and Los Ricos over the next 12–18 months?
Parall continue to provide meaningful cash flow to the balance sheet which will fund not only the construction work at Los Ricos South, but the drilling and engineering work in the North to advance that through feasibility work and permitting stage as concurrent activity to the mine build in the south.
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