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Thursday, June 15, 2017 Derek Macpherson

ANX Reports Strong End to 2017

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Anaconda Mining Inc. (TSX:ANX) reported financials and production results for FQ4 2017 and FYE 2017. During the quarter, although experiencing difficult weather conditions, the company sold a record amount of gold, 4,658 oz, marking a strong finish to the year. Revised guidance expectations were met, selling 15,562 oz Au for FYE 2017, generating C$25.7 million in revenue. In addition, the Orex Exploration Inc. acquisition was completed, creating significant value and growth opportunities for the company, which we believe is not reflected in the company’s current valuation. read more


Wednesday, January 18, 2017 Derek Macpherson

ANX Expands Argyle

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Anaconda Mining Inc (TSX:ANX) announced results from its ~2.2km (22 holes) Phase II drill program at the Argyle target at its Point Rousse project in Newfoundland. We view today’s results positively as the mineralization has potentially been extended to ~600m along strike, which represents a 50% increase, and ~225m down-dip (~100% increase). Although it is early days, based on these expanded potential deposit dimensions and the higher grades seen in these results we have increased our resource approximation for the deposit to ~40-45k oz Au (was ~25-30k oz Au). We highlight that Argyle remains open in all directions, suggesting further resource growth is possible. We highlight that Argyle appears likely to extend Anaconda’s short production life at higher grades than currently being processed. While this exploration success is important for Anaconda to re-rate to typical producer valuations; improved operations and cash flow in H2 2017 (YE May 31st) is critical to allow exploration, particularly at Argyle, to continue.  read more


Thursday, January 12, 2017 Derek Macpherson

ANX's Forward Sale Highlights Need for H2 Cash Flow

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Anaconda Mining Inc. (TSX:ANX) announced it has sold forward a portion of its production to raise C$551,000 as well as early-stage exploration results from the recently acquired Jackson Arm property. At the end of Q1 the cash balance was lower than expected and while operations started to improve in FQ2, ongoing improvements have been guided for in H2 2017 (YE May 31st). We believe continued improvements are crucial to not only shore-up the balance sheet but also to add ounces through exploration. The company also announced that preliminary geological work at its recently acquired Jackson’s Arm property has identified potential drill targets. While this exploration work is mildly positive, the company needs to generate meaningful cash flow from operations to complete a material exploration program. In our view, the mine-life extension via exploration is crucial for Anaconda to re-rate towards typical producer valuations. We note that FQ2 financial results are expected in the near-term which should give us an early indication on the financial impact of the operating improvements.  read more


Tuesday, December 13, 2016 Derek Macpherson

ANX's Exploration Continues; Cash Flow Key

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Anaconda Mining Inc. (TSX:ANX) provided an exploration update from its Argyle, Viking and Goldenville targets that we view as overall disappointing. Disappointingly, the company completed a Phase 1 program at Goldenville, which returned no significant results. Positively, the company has started a Phase II exploration program (~2,000m) at Argyle, where the company had success earlier this year and has completed another 6 holes from the Viking project. We view exploration as key for Anaconda to both extend and scale up the operation; however, weak FQ1 operations have reduced the funds available. While operations are expected to improve in FH2 2016 (Dec 2016 to May 2017), funding for the exploration program is likely constrained by mine cash flow. We now believe delivering positive cash flow from the mine in FH2 is key for Anaconda and FQ2 operating results were a positive indication of that occurring.  read more


Wednesday, December 07, 2016 Derek Macpherson

ANX's Operations Materially Improve in FQ2

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Anaconda Mining Inc. (TSX:ANX) released improved operating results for FQ2 2017. The company’s second quarter was significantly stronger than the first and was ahead of the company’s guidance for FQ2 (previous post). Operations improved on the back of a decreased strip ratio, higher grades and increased throughput as the company realized record quarterly throughput levels, averaging 1,302 tpd, up 15.2% QoQ and 10.3% YoY. We expect that these demonstrated production improvements are likely to result in cost reductions and increased operating cash flow for FQ2. Improving operations along with ongoing exploration success are likely to be positive catalysts for Anaconda.  read more


Thursday, November 17, 2016 Derek Macpherson

Initial Results Suggests ANX’s Viking Project May Grow

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Anaconda Mining Inc. (TSX:ANX) announced the completion of the Phase 1 exploration program at its Viking project in Newfoundland. The program focused on expanding the Thor deposit and investigate other high-potential areas at the project. Results were highlighted by 2.73 g/t Au over 6.0m (VK-16-130), which appears to have extended the Thor deposit 100m to the North. While the average grade of these Phase 1 results came in below the current Thor resource grade, we consider them a good first step and believe that the Viking project resources are likely to expand.  read more


Wednesday, November 09, 2016 Derek Macpherson

ANX Guides for Improved Ops & Adds to Land Position

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Anaconda Mining Inc. (TSX:ANX) provided operating guidance for the balance of F2017 (YE May 31) indicating that the company expects grades to improve and the strip ratio to decrease over the remaining quarters, resulting in lower all-in sustaining costs (AISC). This should result in improved operating cash flow. As well, the company announced the acquisition of two projects in the vicinity of the Pine Cove mill in Newfoundland. Both projects are located along the Long Range Fault system which shares similar geological properties to that of Marathon Gold’s (TSX:MOZ) Valentine Lake Gold project. We expect that improved operating results for the balance of F2017, coupled with continued exploration success, is likely to be positive catalysts for the stock over the medium term. read more


Thursday, October 27, 2016 Derek Macpherson

ANX’s Grows Stog’er Tight & Creatively Adds Revenue

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Anaconda Mining Inc. (TSX:ANX) released drill results from 1,347m of drilling (19 holes) focused on expanding the Stog’er Tight deposit to the West. Phase 1 of this program expanded the West and 278 zones, while identifying a new massive sulfide zone, which is a slightly different style of mineralization than typical at the Point Rouse project. In our view, the drill results have expanded Anaconda’s resource base, likely extending the current mine-life. As well, the company announced an agreement to monetize its waste rock and generate C$2 million in revenue over the next 14 months. We believe the combination of these events should be positive for the share price. As well, the company is continuing to explore its wider property and drill results are pending for the Viking project and Goldenville targets in the near-term.  read more


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