Cleveland Mining is an emerging Low-Cost gold producer in Brazil. - Share Price $0.051/share - Market Cap $12M - 12 week low/high $0.040/$0.12 (Peak April 2012 @ $0.95/share) Management; I always prefer when Directors/Managers put their money where there mouths are and take a considerable portion of the business in shares. The wife of the founding director David Mendalawitz, S.L Mendalawitz holds 17.37% of the business. There are currently 4 no. Directors with truly fantastic credentials; - David is the former Head of Business improvement at FMG, a geologist with over 20 year exp. in gold/iron ore. - Russell is the former Deputy CEO of FMG. - Rick has over 40 years exp. as a mining engineer. - Wayne is the money man holding senior positions with many leading financial institutions (Current head of Deutsche Bank Perth). This group of guys i believe are really out to hit it big in Brazil! They understand the low cost environment of Brazil and are sure as hell they can turn their operations into highly profitable assets over the mid-long term. Gold Production and Growth; - Goais State (Premier Gold Venture 50% CDG moving to 60%). - Foundation of 1.27MT @ 1.82g/ton for 74,400oz Au. + other deposits close-by (<5% surface area tested). Plan to hit 250,000oz/Au resource base through initial drilling and expand the resource from there. - Low CAPEX (Operation started, expansion underway increase production to 40,000oz/year @ AISC of AUD <$500oz/Au averaged over the mine life to 2018 - based on 250,000oz/Au resource base). I.e. very profitable - mine 40,000oz/year for $1,000/oz profit... that's $40M/year for a $12M business. - Great expansion potential >1Moz (8 stages of drilling planned for 33,900m over 27 months across their tenements). - Had some recovered issues when they first started up but i believe this has all been resolved as they press ahead. Iron Ore / Pig Iron; - Bahia & Minas Gerais State - Significant mineralisation identified - Open Access Infrastructure - Targeting low CAPEX / High Margin potential i.e. production for <$20/ton. There aren't many ASX listed goldies operating in Brazil. It's a very under-explored and cheap place to operate which is why i have been leaning towards guys such as BDR, TRY and now CDG. CAS is also another to keep an aye on. Strong management is also very important. I picked up a parcel of these guys last week to test the water. DYOR - Gold stocks are tremendously unloved.
And yet they have never made a profit. plenty of gold/iron ore miners that consistently lose money for their shareholders to pick from if you like that sort of thing
Have they got any cash in the bank or will they need to raise capital, also Cleveland has 50% of the mine so only 50 % of the profit, just be careful been watching this one for 2 years - it looks cheap and it may be a bargain..
