Newlox: Deep Dive

Newlox Gold, V.LUX, gold, costa rica

Great article on our sometime client Newlox Gold (V.LUX):

“Once fully processed by the company, the gold is then poured into dore bars and sold off. All told, the company has cash costs of gold production of just US$600 per ounce as per the latest investor deck. In a rising gold environment, with gold currently trading with a spot price of roughly US$1,850, this represents an excellent return on production costs.

This method of gold production overall results in low capital costs for its small processing facilities, while also resulting in sub-one-year payback timeframes for the operations. Each new facility is budgeted to have capital costs of roughly US$2.0 million, while commissioning is expected to take approximately 6 months. Facilities have been designed by the company to be “cash cows” with the company budgeting for over $8 million in planned revenue per year per project to strongly support organic growth.”

Go read the whole thing at The Deep Dive.

I very much like Ryan Jackson’s small is beautiful approach. It keeps the CAPEX manageable and brings gold into production quickly and cheaply.

I own shares and hope to add more.

One thought on “Newlox: Deep Dive”

  1. FULL DISCLOSURE: Newlox Gold Ventures Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Newlox Gold Ventures Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. Welcome to The Deep Dive, where we focus on providing investors of Canadian junior stock markets the knowledge they need to make smart investment decisions. We take a closer look at all data relating to organizations listed on the CSE and the TSX Venture to create quality stock analysis for investors.

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