New Pacific Metals Corp (TSX: NUAG) (Pink: NUPMF) reviewed 9-30-2020
Market Cap: $739M (USD)
Share Price: $4.83 (USD)
Shares outstanding: 150 M
Cash on hand: $33.62M (CAD) (Dec 2019)
Long-term Debt: None listed on Balance Sheet
Current operations: No.
Working capital: $71.72 M (CAD)
Insiders: 52% owned
Website: newpacificmetals.com
Investor Presentation: https://newpacificmetals.com/corporate-presentation
HQs in Vancouver. Exploration-stage. Four rigs running.
Silver Sand (Bolivia) is the flagship project bought for $45M (USD); in the historic Potosi district.
Large system. Open-pit.
Currently drilling, seeking the feeder zone. Drilled to a shallow depth of 300-meters. Looking for additional high-grade mineralization, 85% of current drilling is step-out exploration drilling. Q4 2020 plans to drill deeper holes.
130 g/ton Silver indicated x 27 Metric tons = 112.81 M oz.
Pan American owns about 10%.
Silvercorp owns about 30%.
Dr. Rui Feng (Founder/Chairman of both Silvercorp and New Pacific) owns about 7%.
Bottom line:
- I reviewed the negative Hindenburg Report and found it full of nonsense; however, any interested investor ought to also read it
- Definitely is a huge mine in the making that requires approvals from Bolivia, which has been known as a high-risk jurisdiction
- I believe Silver Sand will become one of the three largest silver mines in the world
- I first became aware of this situation at PDAC 2019 where I wrote it up as my favorite of all the companies that I met that week. In fact, I believed then that the stock would triple inside a year and that happened
- I hold a portfolio position with a +6.47% weighting. I also hold a +5.32% portfolio weighted position in Silvercorp