Categories: Precious Metals
Topics: General Precious Metals

Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Unlocking Value at 4 Million Ounce Beartrack-Arnett Gold Project, Idaho

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of Revival Gold — Mr. Hugh Agro. Hugh, it's great to have you back on. How are you?

Hugh Agro: Thanks for having me, Gerardo. It's good to be with you.

Gerardo Del Real: Well, let's get right into it. I reached out because I think there's a pretty unique opportunity in the stock right now. We've seen a consolidation from the C$0.87 to C$0.88 level to the C$0.56 level today. Gold looks rock solid to me. It looks like near the US$2,000 per ounce level is going to be the new floor. 

The precious metals are trading well. I suspect a breakout in the gold price here over the next several weeks and months. And yet, we have Revival Gold with a pretty significant pullback. So I wanted to reach out because I think there's an opportunity there for subscribers and readers that are looking for quality gold exposure with a company that's got 4 or 5 million ounces at the very least. 

And I suspect there's millions more on the property along with top-notch infrastructure, top-notch jurisdiction, and a management team that knows how to monetize these assets. How are things coming along?

Hugh Agro: Gerardo, the game is going well. We are working away on our PFS, our resource update, and it's super. I mean, everybody's really excited about how it's coming together. We're on-track. 

As your listeners know, we're planning to have those results out by mid-year. And the market is just absolutely crazy here right now. And I'm so happy to have a chance to give your listeners a shout-out and let them know that we're on-track and that things are really moving along well.

Gerardo Del Real: When we look at the resource that Revival boasts, and we look at peer comps, can you speak to that a bit because it's easy for me to say that the stock is undervalued… it's easy for me to say it's a top-notch team. 

The jurisdiction is top-notch and the infrastructure is great but when we actually get to the math and the numbers, can you give us just a brief overview of some of your peers and the levels they trade at because I think that really, really underscores the opportunity in the stock right now at these levels.

Hugh Agro: Let's start with the fact that this is the second-biggest new discovery of gold in the United States in the last decade. We're at 4 million ounces of gold, and our grade is very, very strong, and certainly relative to any of the peers that are in those upper ranks of large new gold discoveries in the United States. 

So let's start with that and then answer the question on valuation. Currently, we're trading at US$9 an ounce of gold in the ground. Our finding cost in the last four years consistently has been less than US$5 an ounce in the ground. And the deposit is open in all directions.

So what I'm saying is that we have high confidence that we're going to continue to grow the resource and that we're going to continue to grow it if not at US$5 an ounce in costs, certainly less than US$10 an ounce in costs as we look forward. 

Here, we've got a deposit that's very large that’s been put together in an efficient manner that’s trading at exceptional value. And I'd say, relative to our peers, we are down here about half to, in some cases, a third of where our peers are trading. 

Now, there are reasons for that in some respects but I think this is overblown here; we're trading down on just bad market dynamics, and I think there's a lot of value in the stock.

Gerardo Del Real: I couldn't agree more. Can you walk me through what comes next for Revival? And I suspect that with gold breaking out the way that I think it's going to break out that Revival trades closer to C$1 than C$0.50 here in relatively short order. But can you walk us through what comes next for the company?

Hugh Agro: As you like to remind people when we get a chance, Gerardo, we've got C$50M to C$100M worth of infrastructure in this company alone. That itself eclipses our current market cap. And then, you've got the ounces of gold on top of that. 

We are advancing in a two-phase approach. The first phase is a relatively modest 60,000 to 70,000 oz/year production plan with relatively modest capital to go with it. And the NPV that came out of our PEA from 2020 at US$1,750 gold was, I believe, about C$150 million. 

So you've got C$50M to C$100M worth of infrastructure. You've got an NPV on that first phase project that's sizable. And then, we've got the upside in the mill aspect, the second phase of this project, which is where we see potential for something north of 200,000 to 250,000 ounces a year — all in the domestic USA.

Gerardo Del Real: I am excited for what I think is going to be a really, really fun second half of the year in the precious metals space. I'm looking forward to seeing Revival continue towards publishing the results of the study it's undertaking right now. 

And again, if you want jurisdiction, a solid management team, a robust resource that anchors the valuation — a valuation that, frankly, should be much, much higher — Revival Gold is most definitely a company worth your due diligence. 

Anything to add to that, Hugh?

Hugh Agro: I just appreciate the ongoing coverage here, Gerardo, and I give a shout-out to your listeners: we've got a great story here. Happy to chat or refer them to our website as needed. But we've got a great story with great value and lots of news coming.

Gerardo Del Real: Fantastic! Appreciate your time as always, Hugh.

Hugh Agro: Okay, Gerardo.

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