For the first time ever I’ve found a silver-gold- & copper focused comapny listed in Sweden that is worth looking at. Filo Mining is a company within the Lundin Group & the Lundin family trust is by far its largest shareholder. It’s mainly pitched to the market as a copper company but there’s a lot of gold and silver here. Their main project Filo Del Sol is located in the Atacama Region of Northern Chile and it is in pre feasibility stage.
“…the potential size and scale of the Filo del Sol deposit is unparalleled to any project I have been involved with … Our drill results this season are truly exceptional, and rank amongst the best intercepts of my career.”Lukas Lundin
Filo Del Sol is a low grade deposit and currently has a resource of 181,7 moz silver, 6,2 moz gold & 4,8 billion lbs copper. The PFS (pre feasibility study) shows an annual average production profile of 8,6 moz silver, 159 koz gold & 67,000 tons of copper, mine life 13 years. Pre tax Net present value (NPV) at current metals prices is over $2,5 billion, and with Filo Minings market capitalization currently at $250 m gives us a nice NPV:MCAP ratio of 10:1. Remember this is after taxes!
Such high ratio is in itself reason enough to convince any value investor to buy this stock, but there’s more. Just like Victoria Gold, there’s a lot more resources below the proposed open pit, in the case of Filo, there are drill holes going 700 meters (!) below current pit not included in current resource estimate.
With 700 meters of mineralization (still open at depth) the resource stands to grow A LOT in next resource estimate. There’s more… The resource is till open to the east, drill hole VRC093 shows mineralization extends at least 2000 meters east:
The really big upside here is silver, with 8,6 moz/year in production profile and low cost per ounce because of gold & copper, this mine will be a money machine at higher prices of silver. If silver goes to $120/oz they would make a net profit of $1 billion/year (estimated) when they start producing. Together with Silver Bull, Chesapeake & Rockhaven, Filo Mining is one of the best ways to play the coming increase in silver among the post PEA, PFS stage companies.