Stock Tip Tuesday…

Calibre mining (🇨🇦: $CXB) (🇺🇸: $CXBMF)

^_INTRO
Back the gold rush 🪙 

As I am sure you know. Gold is popping off at the moment, after breaking multiple records in 2024.

From this and the fact inflation shows no sign of coming down, the growing Geo-political tensions and a potential recession on the horizon. I thought ye boys would want some picks in the reliable commodities area.

Lets go!

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Billion dollar management team

Calibre Mining is a Canadian-listed, Americas focused, growing gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and Nicaragua.

Calibre Mining management is what stands out for me. We have said it before “back winners” and that is exactly the type of guys in charge here.

This team came across a public company with three 100%-owned operating mines across Australia that collectively were producing more than 200,000 ounces annually. However, these assets had been mismanaged so many times by so many people that no one else was willing to back them or even talk about them.

But THIS team saw the diamond in the rough.

They saw a mismanaged world-class gold producer with massive exploration and discovery potential. And they took advantage of it.

They negotiated a deal to merge the assets into a new Company for a measly $25 million.

That Company was Newmarket Gold. which,

In less than a year, this team turned that twenty-five-million-dollar acquisition into a sale of the assets just over a year later for over $1 billion.

HOW THE FUCK ?

Good question. simple answer. These boys are the real fucking deal. Collectively they have founded, managed, and sold mining companies with a combined value of nearly $30 billion at the time.

⭐ Betting on themselves

The core founders of the company believe in the project and it shows as they have in invested millions into the company. Despite 1 or 2 lower level employees who have sold shares, nobody has done anything but buy more !

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I’ve seen this before 🤔

So, like I said before Calibre mines is comprised of many of the same core individuals that created and sold Newmarket Gold.

Over the past few years, they have been patiently looking for another winner.

And it feels like they found it.

B2 Gold (B2) is a company worth over C$5 billion. It owned and operated two gold mines in Nicaragua, but have since shifted their primary focus on mining in Africa and even the Philippines. To maximize value for shareholders, B2 felt it should focus its resources and expertise to the much larger mines in Africa.

In came to the Calibre guys…… A deal was struck between the two groups, whereby B2 would sell Calibre the portfolio of Nicaragua assets for US$100 million. B2 now owns 34% of Calibre, and Calibre now owns 100% of the assets – with CDN$45 million of cash to spare.

This gave the boys a cash cow

Starting to sound familiar ? The deal gave Calibre two operating gold mines: La Libertad and El Limon.

The two mines are collectively also the largest individual exporting operations in the country.

Considering that gold is now the third-largest export for Nicaragua, that’s a big deal.

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Calibre Mining ⛏️ 

Now that you know the beast let me show you what’s under the hood.

SOLID FUNDAMENTALS 🎯

Calibre Mining has been growing earnings at an average annual rate of 33.1%, while the Metals and Mining industry saw earnings growing at 29.2% annually. Always a positive when a company is outperforming it’s industry. Revenues have been growing at an average rate of 39.8% per year too which is promising.

THE TECHY STUFF ✅

This area is where we really see Calibre shine. Cailbre have a price to earnings ratio of 15.8x, Its closest competitor has a P/E of 40.4x. Not even in the same ball park !

It’s P/E of 15.8x also beats the industries average of 17.2x. Pretty fucking impressive to me.

The analysts also set a whooper target price for the next 12 months of $2.81. Of which the general consensus was good.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

We don’t currently own CXB . Full disclaimer here

Cheers,