The Company finished the year with a strong balance sheet, including $25.4 million in cash, which provides us with flexibility as we move to reinvest capital in Mexico to increase the productivity and the life of the operations.
Despite precious metals having increasingly robust fundamentals, they continue to trade in a wide range, while the mining equities keep getting hammered.
The first two weeks of the year have been incredibly frustrating; however, if we just think about the fundamentals and driving forces pushing precious metal prices higher, one couldn’t be happier.
While certainly uncommon, sharp selloffs naturally freak out traders crushing any bullish sentiment. Serious gold down days are nearly always driven by heavy speculator selling in super-leveraged gold futures.
Looking to the future, I am excited about the 30% production growth we expect to deliver in 2021 as we commence first ore deliveries from our Pavon Norte open-pit mine this month. With strong cash flow generation, we will be reinvesting in the business through an increased exploration budget and development.
The Phase 1, 21-hole, 2,993 meter drill program tested the potential for shallow, broad, bulk tonnage gold-silver mineralization around and below the Contention open pit and underground mine workings.
