Exclusive Company Introduction – Mon 20 Jul, 2020

Inca One Gold Corp. – Introduction to this gold producer in Peru who just signed a deal with a larger miner

Over the past year, I’ve been helping out the guys over at the Junior mining Network. I think the site is a great resource for all metals investors to keep up to date on news out of the sector.

Over this time I have recorded a couple interviews with companies that are sponsors over at the site. The recent interview and Company caught my attention so I am posting it for all of you. The Company is Inca One Gold Corp (TSX.V:IO – OTC:INCAF). Please send me any questions or thought you have on this unique gold story – Fleck@kereport.com.

Click here to visit the Inca One website and read over the corporate presentation.


Comments:
  1. On July 20, 2020 at 12:32 pm,
    Excelsior says:

    Interesting to see some coverage on Inca One here on the KER. I have a small position in Inca One that I’ve been adding to over the last 2 years, and rarely discuss it because it is so off the radar for most investors as a toll milling company in Peru. I was a fan when Equinox Gold spun out one of their mills to IO and am looking forward to them continuing to grow in valuation. Thanks for posting this interview Cory, as it is appreciated.

    • On July 21, 2020 at 4:06 am,
      Excelsior says:

      I heard in their interview that they are stating they are not just a typical toll milling company, because they are buying the ore themselves, after doing preliminary test work, so that they can blend different types of ores together using different chemical processes to achieve the best margins, as they go all the way to dore bars and get the Silver credits up unitl a certain grade. This allows them to bring in ore from many sources, where most toll millers are bringing in 1 or 2 companies ore all the time and getting a part of the production. It is very similar in many regards, but I like how they are trying to distinguish the extra parts of their process as more complicated and more profitable than just a traditional toll milling operation. I’ve been with a few companies doing toll milling like Nicola Mining, Montan, and Dynacor in the past. Even Scorpio Gold that some on this site follow are doing toll milling at present with another miners ore. Excellon has their Evolucion project where they are going to use their mill to process Hecla’s ore, so that is a form of toll milling.

      Really Dynacor (DNG) is doing a very similar business model in Peru and they state they “produce gold from the purchase and process of ore from artisinal and small-scale mining”. That is essentially Inca One’s same model, and that is what Montan was trying to achieve but they went belly up.

      This “purchase to produce” business model, is an an interesting subsector of the precious metals space, in the same way streaming/royalty companies are monetizing margins by getting gold or silver at a discount to sell back into the market where they get the margin spread. I like it and believe there are companies that could be using the same approach in Canada (like how Bonterra has a mill not currently being used that they could be using for toll milling other miners ore), or in West Africa where there could be a hub and spoke model with a centrally located mill that services a number of smaller mining operations.

      • On July 21, 2020 at 4:30 am,
        Excelsior says:

        Correction, I stated Montan (MNY) went belly up, because they had not executed on their prior business strategy, and ran out of funds. I didn’t realize they have now relaunched, so I wanted to point that out.

        Apparently they have relaunched Montan Mining as Fidelity Metals, still in Peru, but they essentially reviewed that their milling strategy had not worked out, in their presentation state they recently “divested their small toll-milling project (Cerro Dorado), for US$1.43 million in gross proceeds,” and then they went out and bought other advanced gold exploration projects instead.

        So Montan Mining switched from toll milling, sold their mill and is now Fidelity Minerals, a traditional Gold explorer.

        https://fd8c7439-cbeb-4155-956c-7480a8fd134e.filesusr.com/ugd/89ab4d_49e57c1620184ffa80cd7ca9c69e9561.pdf

  2. On July 20, 2020 at 12:47 pm,
    David says:

    Ex:
    I have heard of Inca One as I have a note next to my screen that says Inca One .35, 36.2 mil shs. I need to follow up on notes.

  3. On July 20, 2020 at 4:52 pm,
    Buzz says:

    They did a reverse split some time back

    • On July 20, 2020 at 7:55 pm,
      David says:

      That explains the low share structure.

    • On July 21, 2020 at 3:48 am,
      Excelsior says:

      Exactly Buzz. This was them rebooting the share structure after dismal performance for years, but I see it at a good thing as this sector starts to wake back up. I was in IO way back at the end of the bear market for a jaunt when they first launched the new team, when they only had the one operations center and the price of Gold kept dropping and exited for loss, but still thought they had the right idea with consolidating the regional gold processing from smaller operators with their mill. I kept following it and noticed a few newsletter writer pumps from time to time where the shares would pop n’ drop, but there wasn’t the fundamental backdrop of enough production or having the 2nd mill yet, or the higher Gold prices to really underpin a turnaround.

      Now all those elements are present and I believe (IO) may surprise folks over the next 1-2 years as the higher gold prices will really give them a nice margin, attract more smaller scale miners to the gold sector in Peru, and really become a solid business model for them as toll millers. When Equinox was divesting assets to get their company more focuced, and sold Inca Onetheir second mill, I knew it was game on, and that is when I started getting more interested again.

      If they can grow their throughput higher they can really get more attention because they have been way under-utilizing their processing capacity and could take on 2-3 as much ore and really move the needle. I’m wishing their team all the success they deserve and believe they could be an easy 5-10 bagger from present prices.

      • On July 21, 2020 at 4:18 am,
        Excelsior says:

        This new deal they just signed with PPX is going to be a very nice contract to have and boost their incoming ore and production numbers, so I’m pretty excited to see how this works out.

        ______________________________________________

        Inca One and PPX Mining Sign Gold Ore Supply Contract

        July 9, 2020

        “INCA ONE GOLD CORP. (IO) (INCAF) a gold producer operating two fully permitted, mineral processing facilities in Peru, is pleased to announce that it has, through its subsidiary, signed a one year Ore Purchase Agreement for 40,000 tonnes of gold-bearing material with a subsidiary of PPX Mining Corp. (TSX.V: PPX.V)”

        https://www.incaone.com/news/index.php?content_id=260

  4. On July 21, 2020 at 5:12 am,
    Charles says:

    Thanks Ex. for your thoughts. I have heard of this company a long ways back, I think from David Straka back when I first got involved in precious metals, but never invested and then the downtrend began. This seems like a fairly low risk way to play the rise in prices and I might pick up some shares in the small IRA I self manage.

    • On July 21, 2020 at 9:21 am,
      Excelsior says:

      Yes, the rough years are behind Inca One now, and the fun years are in front of them.
      Now with 2 mills, increasing production from that PPX deal, and rising gold prices, they look to have some nice appreciation awaiting them. I may add more as well sometime in the not so distant future.