Golconda Gold (TSXV:GG) - Self-Funded Producer Targets 50K+ Oz/Year by 2028 Without Dilution

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Company Interviews

Crux Investor

2000 episodes

1 day ago

An insight into junior mining and opportunities to invest. Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster. Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.

All content for Company Interviews is the property of Crux Investor and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.

Golconda Gold (TSXV:GG) - Self-Funded Producer Targets 50K+ Oz/Year by 2028 Without Dilution

Company Interviews

27 minutes

3 weeks ago

Golconda Gold (TSXV:GG) - Self-Funded Producer Targets 50K+ Oz/Year by 2028 Without Dilution

Interview with Ravi Sood, Chairman & CEO of Golconda Gold

Our previous interview: https://www.cruxinvestor.com/posts/golconda-gold-tsxvgg-aiming-to-deliver-a-step-change-in-production-4824

Recording date: 20th October 2025

Golconda Gold has established itself as a disciplined precious metals producer, emerging from a decade-long bear market to operate two permitted gold mines with strong growth prospects. The flagship Galaxy Gold Mine in South Africa, currently producing just over 10,000 ounces in 2025, is set for a production ramp up to more than 40,000 ounces annually by 2028. This expansion leverages the existing infrastructure, specifically a 50,000-ton-per-month mill running at only 30-40% utilization, which supports fourfold output growth without major new investment.

The company is preparing to bring its second asset, the Summit Gold Mine in New Mexico, into production in mid-2026, targeting a steady-state 12,000 gold equivalent ounces a year. Both assets were acquired at nominal cost through distressed situations, allowing Golconda to bypass the heavy development and permitting risks that typically challenge junior miners.

A defining feature of Golconda's model is its commitment to self-funded growth, with all expansion financed from internal cash flows and no reliance on equity dilution or additional debt. This approach, underpinned by more than 40% insider ownership, has driven management to prioritize survival through cost control and strict preservation of the share count—an approach that preserved capital structure during market lows and now positions the firm to maximize returns as gold prices surge. By the end of 2025, Golconda expects to be debt-free and operating with positive cash flow, having already repaid all creditors and a key offtake credit line.

Management describes Galaxy's current approach as "harvest mode," prioritizing cash generation and risk-adjusted returns, particularly in light of the mine's 74% ownership structure due to local regulations. The clear capital discipline is also evident at Summit, where contract mining has been chosen to ensure operational effectiveness in a remote environment, despite higher reported costs. Looking ahead, Golconda’s financial flexibility enables future capital distribution—potentially through buybacks, dividends, or further opportunistic acquisitions. For investors, Golconda offers a unique value proposition: a resilient, undiluted growth platform with long-life assets, prudent management, and the upside of flexible capital allocation in a favorable gold price environment.

View Golconda Gold's company profile: https://www.cruxinvestor.com/companies/golconda-gold