G Mining Ventures achieves nameplate capacity at Tocantinzinho gold mine

Published 11/07/2025, 17:22
G Mining Ventures achieves nameplate capacity at Tocantinzinho gold mine

BROSSARD, Quebec - G Mining Ventures Corp. (TSX:GMIN) (OTCQX:GMINF), a $2.8 billion market cap gold producer with a strong 60.65% return over the past year, announced Tuesday that its Tocantinzinho Gold Mine in Brazil reached a significant operational milestone, with the processing plant operating at an average of 12,890 tonnes per day over 30 consecutive days. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, with analysts maintaining a strong buy consensus.

The company reported gold production of 42,587 ounces for the second quarter of 2025, representing a 20% increase compared to the first quarter. Gold recovery improved to 90.3% from 87.7% in the previous quarter. The company maintains impressive operational efficiency with a gross profit margin of 60.56%, according to InvestingPro data.

After experiencing premature wear issues with poly-met liners in the Semi-Autogenous Grinding mill earlier this year, GMIN completed a permanent replacement with a steel liner system in April. Since the installation, the mill has achieved an average throughput of 96% of nameplate capacity during May and June, compared to 67% in April.

"The team at TZ has delivered an impressive Q2 following the SAG mill liner challenges earlier this year, leading to a successful ramp up to nameplate throughput," said Louis-Pierre Gignac, President and Chief Executive Officer, according to the company’s press release.

Mining operations also showed improvement, with an average mining rate of 47,900 tonnes per day in the second quarter, an 18% increase from the first quarter. The company cited above-average rainfall as having adversely impacted first quarter performance.

GMIN reaffirmed its 2025 production guidance for the Tocantinzinho mine of 175,000 to 200,000 gold ounces. First-half production totaled 78,165 ounces, representing 42% of the midpoint of annual guidance. With a moderate debt level and strong operational metrics, InvestingPro data reveals 12 additional key insights about GMIN’s financial health and growth potential, available exclusively to subscribers.

The company stated that additional mining fleet equipment was delivered to Brazil during the quarter, with assembly and commissioning scheduled for the third quarter, which is expected to further increase mining production in the second half of the year.

GMIN plans to release its complete second quarter financial results on August 14, 2025, after market close. Trading at a P/E ratio of 28x, analysts expect continued net income growth this year. Discover detailed financial analysis and forecasts in GMIN’s comprehensive Pro Research Report, one of 1,400+ deep-dive reports available on InvestingPro.

In other recent news, G Mining Ventures Corp reported robust financial results for the first quarter of 2025, with revenue reaching $98 million and a strong 61% margin from mining operations. The company achieved an adjusted net income of $35 million, translating to $0.16 per share, and maintained a cash position of $149 million, an increase of $8 million from the previous quarter. BMO Capital has reiterated its Outperform rating for G Mining Ventures, citing the company’s operational improvements at its Tocantinzinho project, which produced 42,587 ounces of gold in the second quarter. Desjardins has initiated coverage on G Mining Ventures with a Buy rating, highlighting the company’s strategic efforts to advance the Oko West project, which could mitigate risks associated with being a single-asset producer. Analysts at Desjardins anticipate a positive re-rating for the company as it achieves key milestones. G Mining Ventures is targeting gold production of 175,000-200,000 ounces in 2025, with significant contributions expected from the Oko West project. The company is also focused on enhancing its production capacity and maintaining its position as a disciplined, growth-oriented producer.

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