Interview with Hugh Agro, President & CEO of Revival Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/revival-gold-tsxvrvg-us-acquisition-more-than-doubles-production-target-5215

Recording date: 10th September 2024

Revival Gold (TSXV:RVG) presents a compelling investment opportunity in the gold mining sector, advancing two significant projects in mining-friendly jurisdictions of the Western United States. With a combined resource base of 6.2 million ounces of gold and a clear path towards production, the company offers investors exposure to a growing gold development story with substantial exploration upside.

The company's flagship Beartrack-Arnett project in Idaho benefits from existing infrastructure and a history of past production, significantly de-risking the project and reducing capital requirements. The current plan envisions an open-pit, heap leach operation producing approximately 63,000 ounces of gold annually over an 8-year mine life. With a modest initial capital requirement of just over $100 million and strong economics (24% after-tax return at $1,800 gold), Beartrack-Arnett offers a quick path to production with significant exploration potential.

Revival Gold recently acquired the Mercur project in Utah for $22 million, a strategic move to diversify its portfolio and accelerate its path to production. Mercur brings several key advantages, including simplified permitting due to its location on private land, additional heap leach potential, and proximity to infrastructure. The acquisition increases Revival's targeted production to over 150,000 ounces per year from both projects combined.

Key near-term catalysts include a Preliminary Economic Assessment for Mercur expected by the end of Q1 2025, ongoing permitting preparations for Beartrack-Arnett, and continued exploration at both projects. The company estimates that permitting for Mercur could be completed in about three years, with potential to improve on this timeline.

The current gold mining industry dynamics, characterized by rising gold prices and increasing scarcity of quality deposits, position Revival Gold favorably. Major producers are actively seeking to replenish reserves, leading to increased M&A activity in the sector. This trend underscores the value of Revival Gold's projects and positions the company as a potential acquisition target.

Financially, Revival Gold recently restructured its obligations related to Beartrack-Arnett, converting $27 million cash payment into 0.3% Net Smelter Return royalty. This move significantly reduces the near-term capital burden and aligns payment with future production. Despite its significant resource base and advancing development plans, Revival Gold currently trades at a conservative valuation of approximately $7 per ounce of gold in the ground. With a market capitalization of around $50 million, there appears to be significant upside potential as the company achieves key development milestones. The company is actively engaged in discussions with potential strategic and financial partners to fund project advancement.

Investors should consider Revival Gold for its large resource base, advanced-stage projects in excellent jurisdictions, clear path to production, and exploration upside. The experienced management team, potential for corporate transactions, and conservative current valuation add to the investment appeal. However, as with all mining investments, risks remain, including potential delays in permitting or development, fluctuations in gold prices, and the need for additional capital.

As Revival Gold continues to advance its projects and achieve key milestones, it offers investors an opportunity to gain exposure to a growing gold development story with the potential for significant value appreciation in a favorable macro environment for gold.

View Revival Gold's company profile: https://www.cruxinvestor.com/companies/revival-gold-inc

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