Superior Gold


Primary ticker: TSXV:SGI, OCT:SUPGF
Stage of development: Production
Primary minerals: Gold
Project to promote: Plutonic Gold Mine
Project location: Australia
Corporate presentation: Click here

Superior Gold is a Canadian-based gold producer that owns 100% of the Plutonic Gold Operations located in Western Australia. The Plutonic Gold Operations include the Plutonic underground gold mine and central mill, numerous open-pit projects including the Plutonic Main Pit push-back project, the Hermes open pit projects, and an interest in the Bryah Basin joint venture. Superior Gold is focused on expanding production at the Plutonic Gold Operations and building an intermediate gold producer with superior returns for shareholders. The Company exceeded its 2021 production guidance with 77,321 ounces produced. 2022 production guidance is between 80,000-90,000 ounces with the Company reaching the 100,000 ounces per annum run rate in H2 2022.

Cash: USD$23.8M

Major shareholders:
TD Securities – 7.6%
Franklin Advisors – 6.9%
Greywolf Capital Management- 6.4%
Fidelity Capital Market Services – 5.5%
IXIOS Asset Management – 4.4%
Management ownership – 2.6% 

Management Profile

Chris Jordaan – President & CEO
Mr. Jordaan has 30 years of international processing and mining industry experience. He has extensive management and operations expertise at global senior and mid-tier mining companies. Mr. Jordaan was most recently with Newcrest Mining Ltd., Australia’s largest gold miner, as Programme Director for the transformation of PNG operations, General Manager of Lihir Gold Mine, one of the world’s largest gold mines, and Chief Performance Officer. Prior to that, he was the CEO of International Ferro Metals Limited, an LSE-listed chrome mining, and smelting company. Mr. Jordaan holds a Master’s degree in both Mechanical Engineering and Business Administration.

What is your rationale for taking part 121 Mining Investment?

We are looking to equity investors as well as to improve awareness of the Company and to discuss recent financial and production results as well as the updated mineral reserve and resource statement for the Company.

What recent news would you like to highlight to investors attending?

March 14, 2022 – Superior Gold Announces Court Awards It the Ability to Earn up to 50% Joint Venture Interest in Vango’s K2 Tenements
March 8, 2022 – Superior Gold Announces Strong Fourth Quarter and Full-Year 2021 Financial Results
January 17, 2022 – Superior Gold Exceeds Production Guidance in 2021, Grows Cash Position, and Targets Further Growth in 2022

What are your key goals for the next 3, 6 and 12 months?

3 Months:

-Release updated Mineral Reserve and Resource Statement
-Release Q1 Production Results and Cash Position
-Release Exploration Drilling Updates
-Transition into higher grade open pit feed from main pit deeps (up to 2.5 g/t)

6 Months:
-Complete Heritage Survey for Main Pit Push-Back
-Hit 100,000 oz annualized run rate from operations
-Increase underground tonnage from 1.5 MTPA to 1.8 MTPA
-Release Exploration Drilling Updates
-Complete drilling on open pit and underground targets
-Complete Heritage Survey for Main Pit Push-Back
-Hit 100,000 oz annualized run rate from operations
-Increase underground tonnage from 1.5 MTPA to 1.8 MTPA
-Release Exploration Drilling Updates
-Complete drilling on open pit and underground targets

12 Months: 
-Release Main Pit Push Back Feasibility Study
-Secure mill feed to restart the second mill
-Increase production to 100,000 ounces or better

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Cost inflation and increased work absenteeism as Western Australia open its borders to outsiders after Covid-19. We hire extra staff to mitigate the loss of production time due to Covid-19. In terms of inflation, we hire workers from outside Australia and outsource some engineering work. We have locked in natural gas prices at lower levels which is what we use to produce power at the mine site.

What do you think makes your company such a compelling investment?

Trading a the bottom of multiples compared to peers, with growing production and decreasing costs. Significant re-rating opportunity.

What are the top 3 key investor takeaways?

Growing gold production in first world jurisdiction
Spare mill capacity to further grow production
Excellent land packages for continued resource growth