Atlantic Gold Corporation
Primary ticker: TSXV:AGB
Stage of development: Production
Primary minerals: Gold
Project to promote: Moose River Consolidated Gold Mine

Live financials

Atlantic is a well-financed, growth-oriented gold development group with a long term strategy to build a mid-tier gold production company focused on manageable, executable projects in mining-friendly jurisdictions.

Atlantic is focused on growing gold production in Nova Scotia beginning with its MRC phase one open pit gold mine which declared commercial production in March 2018, and its phase two Life of Mine Expansion which will ramp up gold production to + 200,000 ounces per year (by 2023) at industry lowest quartile cash and all-in-sustaining-costs (as stated in the Company’s news releases dated January 16, 2019 and January 29, 2018).

Management Profile

Steven Dean – Chairman & CEO

Steven Dean is a Fellow of the Australasian Institute of Mining and Metallurgy, a Member of the Canadian Institute of Mining, Metallurgy and Petroleum, and a Fellow of the Institute of Chartered Accountants of Australia. He has extensive experience internationally in mining, including as President of Teck Cominco Limited (now Teck Resources Ltd.).

Prior to joining Teck, Mr. Dean was a founding member of management of the Normandy Poseidon Group, (which became Normandy Mining) which was the largest Australian gold producer and a significant producer of base metals and industrial minerals until its acquisition by Newmont Mining in 2002, as well as co-founder of PacMin Mining Corporation which became a subsidiary of Teck Corporation in 1999.

Sean Thompson – Director Investor Relations

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

Looking to increase awareness of Atlantic Gold Corporation amongst the Asian investment community and build relationships with new potential investors in the region.

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

March 5th, 2019: Q4 & Full Year 2018 Financial Results; Successful First Year of Operations: Exceeded production guidance and met cost guidance. Clear focus on margin: 2018 AVERAGE REALIZED AISC MARGIN OF CAD $857/OZ (USD $651/OZ @ 0.76 USD/CAD) CASH COSTS CAD $558/OZ (USD $424/OZ @ 0.76 USD/CAD) AND AISC CAD $731/OZ (USD $556/OZ). First year operating cash flow over 10 months of commercial operations of CAD $69.6 million ($0.32 per share). Strong balance sheet: cash balance of $50.3 million, net debt of $63.7 million.
March 25th, 2019: Updated MRC production schedule. Mineral Reserves Increase by 401,000 ounces or 27%. Mine Life Increases to 10+ years. Total mineral reserves of 1.9 million ounces. Compound Annual Growth rate of production of 21%. Further mine life potential at other regional targets.

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

3 Month

Prioritize targets for further exploration, including drill-testing, on the Phase 4 Corridor Regional Program. Completion of the Fifteen Mile Stream and Cochrane Hill Environmental Impact Statements, targeted submission in Q2 and Q3 2019, respectively.

6 Month

At the Cochrane Hill gold deposit the program will focus on further testing of the robust zone of mineralization which is interpreted to be open at depth and to the east. In addition, improved structural understanding of the Cochrane Hill deposit will be utilized to identify further prospective zones in the area. Follow-up diamond drilling is underway to test the easterly extension of the 149 Gold Deposit. This was the first discovery of the Corridor Regional Program, and an initial program of 6,000m is planned. Encouraging early results from the Seloam Brook, Mill Shaft, and Cameron Flowage traverses in the Corridor Regional Program already warrant additional exploration, including drill testing. Elsewhere in the Corridor results obtained during 2018 are being used to develop a focused exploration program to make further discoveries in this highly prospective ground. Initial geological interpretation of Atlantic Gold’s extensive land package in SW Nova Scotia will be used to develop an exploration strategy tailored to this region that is under-explored for disseminated gold deposits.

Progressing and seeking final approval of the Environmental Impact Statement for Beaver Dam.

12 Month

Producing 92,000 – 98,000 ounces of gold at Touquoy at a cash cost of CAD$560 – $610 per ounce (US$420 – US$458 per ounce at an exchange rate of CAD$0.75), and an AISC between CAD$695 and $755 per ounce (US$521 – US$566 per ounce at an exchange rate of CAD$0.75).

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

The gold mining sector as a whole has faced several challenges over the last few years. Low investor appetite / interest in the gold sector due to volatility in the gold price and poor capital allocation / mismanagement by the gold industry itself over the years. By applying discipline and risk management to the gold business over the last few years we have generated a return on investment capital (ROIC) of 13.6% with an EBITDA margin of 60%, well above the industry and peers. As large shareholders (board and management own +35% of the shares), we are aligned with shareholders, are focused on risk management, execute fast because “time is money” and look to maximizing value for shareholders.

In a sentence,what do you think makes your company such a compelling investment?

There are very few junior gold mining companies in low risk jurisdictions (Canada) with open pit operations mining at the lowest costs in the sector right now and a Phase 2 expansion production profile and mine life (200,000 ozs over 10 years). Trading at an approximate Price to Net Asset Value (P/NAV multiple of 0.60 – 0.70x) there is considerable upside with our “Corridor Regional Exploration Program” along an unexplored +45 km belt. Using the “Aussie model” approach whereby reserves are added to on an ongoing basis funded from cashflow which generates optimal NAV over time (a quality long term producer).