Saturday, July 13, 2024

Element 79 Gold Corp. (CSE: ELEM, OTC: ELMGF, FSE:7YS) : Near-term Producer with Significant Alpha Potential


Element 79 Gold Corp. (CSE: ELEM) (OTC: ELMGF) (FSE:7YS) (“Element 79 Gold”, the “Company”) is a mining company focused on gold, silver and associated metals in Nevada and Peru. 

And unlike most other gold companies. It’s the deals. ELEM has a habit of raising cash but frequently leaving them with revenue/exposure from/to the property. The last three PRs also delineate this trend. 

The 52-week hi-lo is CDN0.015-CDN0.25 a share. Currently trading at CDN0.17, looks active. The average daily trade is 63.5k shares. It is not a barn burner, but compared to other peers, it has decent growth.

2023 Deals: Lengthy, but that’s the point.

· Lucero: We expanded the property in June 2023, received Exploration Permits in September 2023, and continued focusing on our high-grade flagship project.

· Machacala Transaction Cancellation: In March 2023, we halted the Machala deal to refocus better and conserve funds. Return of shares involved with the value anticipated before the end of 2023.   

· Centra Sale: We sold two projects to Centra for CAD 1,000,000 in stock in May 2023. Centra is completing its 43-101 on the Long Peak property and commencing final filings for its IPO. Once Element79 receives these shares and freely trades, they’ll be strategically managed for corporate growth and investment into operational budgets. 

· Valdo Sale: We’re also selling three projects to Valdo Minerals for CAD 1,250,000 in stock through a deal announced inNovember 2022 and extended in May 2023. Valdo has a similar business trajectory as Centra, with a timeline staggered by approximately nine months, and the Company will strategically manage these shares similarly to those from Centra. 

Dale Spinout: In July 2023, we transferred the Dale Property to Synergy Metals Corp. Special Shareholder Meeting set for December 11, 2023, Record Date for Notice of Meeting, Record Date for Voting and Beneficial Ownership Determination Date of November 6, 2023. Further progress updates and timing estimates for completion of the Plan of Arrangement Spinout will be announced following the meeting.

Most recently.

Element79 and Condor have agreed to reschedule the U$500,000 payment into two tranches.

Twenty-five percent of the payment (US$125,000) will be satisfied now by the issuance of common shares of Element79. The balance of US$375,000 is due on or before March 31, 2024. Considering the rescheduled payments, Element79 will issue a bonus of US$12,500 to Condor, payable in Element79 shares. All other terms of the Minas Lucero del Sur S.A.C. sale remain unchanged.

If I had to cut ELEM from the herd, I see that rather than the Company n the mining business, it practices the business of mining. While you may think the difference is subtle, it isn’t.

As the front page of ELEM’s website, Innovating the Junior Mining Model: Near Term Cash Flow Potential with Blue Sky Exploration in Nevada and Peru.

The quality of management further proves this tenet. These are business folk with highly competent and experienced geologic folk. The majority are in place to execute the above direction.

Corporate Presentation.

ELEM is not a bunch of mooks sitting around, hoping to strike it rich. Instead, they have the properties and the management and the money to make it happen, so that investors and management might well strike it rich.

So be it.

Bob Beaty
+ posts

For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.

Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)

Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;

‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.

Let’s go.


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