Anaconda in a strong cash position

Daniel
Daniel MacEachern
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Anaconda Mining wants to become a prominent junior gold producer in North America, with an eventual goal of 100,000 ounces of annual production.

Anaconda Mining’s Pine Cove mine. — TC Media file photo

“That’s going to come from (mergers and acquisitions) activity, but first and foremost it starts with our producing gold mine, the Pine Cove mine,” said company president and CEO Dustin Angelo on Tuesday afternoon at the mining industry’s annual Resource Investors Forum at the Sheraton Hotel Newfoundland in St. John’s.

In the company’s last fiscal year, Pine Cove produced nearly 15,000 ounces of gold, and more than $9 million in operating cash flow, noted Angelo. This year, the company is aiming for 18,000 ounces.

“We’ve demonstrated the ability to generate a lot of cash flow out of this mine,” said Angelo, who said there’s still six years left on the mine’s current deposit, and the company has expanded its land acquisitions over the last 18 months. “Now we have nearly 4,800 hectares of property, and we’ve currently got an exploration program in progress.”

Angelo was also able to boast that the company is all but debt-free, owing less than $200,000 in interest-free funds from the federal government. The company notes cash flow means it has little need for equity financing.

The company recently shed non-core assets in Chile to raise $5 million, and the positive cash flow being generated from its operations has been funding all of its Pine Cove growth.

Anaconda is also using its strong cash position to leverage mergers and acquisitions and to make itself attractive to other potential partners and merger candidates.

“So the platform is in place for Anaconda,” he said. “We’ve got a clean balance sheet, we’ve got an operating mine, we’ve got a growth rate around our mine, and we’ve got the ability to go out and broker deals that can grow our company.”

 

dmaceachern@thetelegram.com

Twitter: @TelegramDaniel

Organizations: Resource Investors Forum, Sheraton Hotel Newfoundland

Geographic location: Pine Cove, Chile

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