Prime Mining: undervalued and overlooked - the opportunity of a lifetime?

By James Moore


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It is always fascinating to consider why people do what they do, especially some of the extremely successful ones.

It is always fascinating to consider why people do what they do, especially some of the extremely successful ones.

Why, when they have achieved what most could only ever dream of, do some of the super-rich continue to treat money with such careful respect?

Why, for instance, does Warren Buffett still live in the same modest $650,000 house that he bought in 1958?

Why did the former billionaire owner of IKEA always fly coach and drive a 1993 Volvo for twenty years?

These have been some of the richest men in the world. Is such a meticulous approach the secret to their success?

Does it filter through their entire lives, empowering them to see and act on life’s great opportunities that most others simply miss?

If your answer to this question is “yes” then take some time to learn about Prime Mining Corporation (TSX-V:PRYM & OTCMKTS:EPWMF) and its chief executive, Andy Bowering.

Download our EXCLUSIVE REPORT here.

Leading from the front

Bowering has had an immensely lucrative career.

He’s raised hundreds of millions of dollars, developed internationally recognised mining projects, and made a lot of people very wealthy; particularly his early investors.

Take Millennial Lithium (TSX-V:ML) as an example. This was Bowering’s previous venture before Prime. He founded it at C$0.15 and took the stock as high as C$4.62 within a few years. It still trades at C$1.45 today, in what is a challenging lithium market.

There is no questioning Bowering’s pedigree.

When he says he believes he has found “the opportunity of a lifetime” it would be wise to pay attention.

Bowering has already put C$3.5 million of his own cash into Prime. Not only that, but he does not draw a salary. He gets paid 100% in stock. His interests are FULLY aligned with shareholders.

How many other companies out there can you invest in where this is the case?

Not many, that is for sure.

In fact, Bowering’s confidence is so pervasive that it has filtered through the entire team he has recruited.

Such is their conviction in what Prime can achieve at the Los Reyes Gold Project, everyone involved has taken Bowering’s lead and swapped their entire first year’s pay for shares at C$0.30!

Statements of intent do not come much stronger than this.

To find out exactly why Prime chief executive Andy Bowering and his team recently swapped their entire salaries for stock at C$0.30, read our special report HERE.  

The Prime Mining (TSX-V:PRYM & OTCMKTS:EPWMF) investment case is both persuasive and extremely exciting.

Los Reyes is based in the prolific mining state of Sinaloa, Mexico. The project already has an indicated and inferred resource of 530,00 ounces of gold and 10 million ounces of silver. The plan is to bring this into production using an ultra-efficient mining technique with a low cap-ex requirement of only $20 million.

Once up and running, Prime expects full payback of the initial $20 million within just six months!

After that, every free dollar generated at Los Reyes will flow straight back into Prime and, ultimately, its shareholders.

It is a plan of epic proportions, realizable within a relatively short period of time.

Better yet, there is huge scope for increasing the overall size of the resource at Los Reyes.

It is quite possible there could be as many as 1.5 million to 2 million ounces of recoverable gold here.

17.5 kilometers of gold mineralization have been identified across the project area, but so far only seven kilometers have been built into the resource model using a conservative gold grade of 0.5 grams per tonne (“g/t”).

Is it all starting to make sense now?

The market is certainly starting to get it.

In the first two full trading weeks of 2020, Prime Mining’s (TSX-V:PRYM & OTCMKTS:EPWMF) share price has risen above C$0.40. This values the company at C$23.5 million.

But how much higher could it fly?

The answer could be “a lot”, based on the performance of three much larger companies than Prime with projects extremely similar in profile to Los Reyes with a Mexican focus. Let’s take a look:

Minera Alamos (TSX-V:MAI) C$97.2 million market cap

  • Minera is a former co-owner of Los Reyes & holds a 16.1% stake in Prime

  • Minera has two projects; La Fortuna and Santana

  • La Fortuna has a 318,500 ounce gold resource (with 167,100 ounces in the most valuable “measured” category) and 1.9 million ounces of silver (one million ounces of which are measured)

  • Production is yet to commence at La Fortuna, but permitting is expected later in 2020

  • A maiden NI 43-101 resource estimate is expected at Santana in Q1 2020

With a market cap nearly four times that of Prime’s, Minera acts as a highly encouraging guide for what Bowering and his team could achieve, not least because its project is not yet in production. If Prime can increase Los Reyes’ gold and silver resource and upgrade enough ounces to measured and indicated, then expect to see a sharp positive rerate in Prime’s share price as the company’s valuation catches Minera’s.

With a 5,000-meter trenching and sampling programme underway at Los Reyes on previously overlooked surface mineralization, such a rerate could be imminent.

Great Panther (TSX:GPR) C$230.4 million market cap

  • Great Panther has six different projects at different stages of development. These include:

    • Four mines; Tucanao (in Brazil), Topia, Guanajuato & Coricancha (in Peru), and two assets; El Horcon & Santa Rosa

  • The company has reported gold resources of 3.7 million ounces (with 2.4 million in the measured and indicated categories) and 33 million ounces of silver (18.4 million measured and indicated)

  • Tucano is the flagship mine accounting for 85% of Great Panther’s gold and silver

  • Great Panther is active in developing its Mexican portfolio

Comparing Prime to a company ten times its size is obviously much more ambitious, but if Los Reyes lives up to expectations it could be a project on a par with the best of Great Panther’s. Given that Great Panther is active in growing its Mexican assets, it will no doubt keep a close eye on developments at Los Reyes. This could present a speculative opportunity in itself.

GoGold Resources (TSX:GGD) C$128.5 million market cap

  • GoGold’s primary focus is its Parral tailings project

  • Parral has been in production since 2015 and contains 213,900 ounces of gold and 26.4 million ounces of silver in the measured and indicated categories

  • GoGold’s second project at Los Ricos does not yet have an official resource estimate

Perhaps the most important lesson to learn from GoGold’s valuation when compared to Prime’s is the significance of bringing a mine into production. Given how favorably Los Reyes’ current resource compares to Parral’s (albeit in lower categories at present), if Bowering can fulfil his vision of bringing the mine into operation within his 24-month target, the upside potential for Prime is clear as day.

Four months in and EVERYTHING is going to plan

Before you start reading our exclusive report, which provides much more detailed analysis of the opportunity Prime is pursuing at Los Reyes, let me leave you with a final thought.

Throughout this piece I have talked about Prime’s original target of bringing Los Reyes into production within 24 months.

Well, that was four months ago!

As you will learn in the report, everything is going according to plan so far.

That means it could be only 20 months from now until the gold starts pouring at Los Reyes.

Just imagine that.

Gold pouring at Los Reyes within 20 months…

Download our EXCLUSIVE REPORT here.


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In this article:

Author: James Moore

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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