Record Gold Revenue for Nevada Mine, But Can They Turn it into FCF? | Borealis Mining CEO Interview

**SPEAKER_1** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today in the CEO BBQ near term gold production in Nevada, together with Borealis Mining.
But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general and impersonal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on Sitterplus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases, and do not consume this content if you don't agree with everything said therein. Moving on, this is not Borealis' first time on the CEO BBQ. Kelly and I have done multiple interviews over the last couple of months. So if it's your first time hearing about the company, I'm going to post a link to a playlist that's going to have all the previous interviews that I've done. If you haven't watched them yet, please do. They had the basic grilling and the smell test, and all the nice stuff in there. We're not going to repeat all that in here. This is going to be more of an update on production, and a bit of a chatter about what's going on with strategy and so on and so forth. In a nutshell though, Borealis Mining is restarting production and its namesake, Borealis Mine, which is about 16 miles southwest of Hathorne in western Nevada's Walker Lane belt. This is a high-sulfidation epithermal gold system with an existing heap leach pad, as well as an ADR facility that historically delivered more than 600,000 ounces of gold through open pit heap leach mining. Right now, the operation is actively mining in the east ridge pit, just beginning stripping at the deep or flat pit and steadily increasing crushing and stacking rates on the leach pad with a crew of just 27 people, which has translated into quarterly revenue of over $6 million, which of course will be a big part of the conversation today.
The near-term drivers here are further gains in mining and processing throughput at Borealis itself plus the technical work that's now underway to de-risk the next stages of growth, which might come from other mines. Of course, that's something I'll be asking about as well. There's a 5,000-meter drill program going on right now that's focused on metallurgy and geotechnics and what not and resource expansion that kicked off mid-June at the Sandman Project. That's running alongside ongoing engineering and permitting studies. They're aimed at supporting a future construction decision, which hopefully is something else that we can get an update later on.
Now quickly, some of the numbers and a bit of the details. Borealis Mining is listed as BOGO. I always remember it as buy one, get one free. So B-O-G-O on the TSX-V, where the average three-month daily volume is about 540,000 shares. The stock's 52-week high is $2.04 and its 52-week low is $0.49.
With a market cap of $122 million and that's Canadian dollars, and just over 147.6 million shares outstanding. Today, this is an 83-cent stock with a 50 and a 200-day moving average at respectively 101 and 137, which means the stock is now trading below both of them. In terms of cash, that's part of what we'll be talking about later on in the conversation, but Borealis did raise some money. So they closed on a $23 million bought deal in January, and that was done at a $1.50. And again, more about that later on in the conversation. Now, for this to actually become a conversation though, I will have to shut up and Kelly, I'll give you the word here, but first of all, thank you for sitting down with me today.

**Kelly** (3:53)
Thanks for having me on again. And I think that I can just give you the job. You're doing a great job of telling a story, Antonio. That was very well. Thank you.

**SPEAKER_1** (4:02)
Nevada has grown quite a lot of trees since we last spoke by the looks of behind you.

**Kelly** (4:07)
Well, certainly I'm up in Northern Ontario at the moment.

**SPEAKER_1** (4:11)
It was a pleasure catching up in Vegas as well last month. Sad I couldn't come to site, but maybe maybe soon, maybe this year.