This desk is surprised to learn that G Mining Ventures (GMIN) has decided to ignore its own corporate strategy and buy Tocantinzinho from Eldorado. Let’s check the purchase against GMIN’s own criteria:
GMIN has stated it intends to purchase 2 to 3 assets and get at least one of them operating within two years. Presumably, that will be the second asset they purchase, because this desk would lay $1,000 against a plate of fejoada that Tocantinzinho continues to be a financial black hole. Way back when, one of the first pieces of mining advice I ever received was “Avoid The Tapajos”. True then, true now and true in the future but that doesn’t matter to GMIN, these specially created A-Lister mining teams get years of good grace before the eventual failure. Remember TMAC.