A PREMIER INTERMEDIATE GOLD PRODUCER IN THE AMERICAS
Business Summary
Glamis Gold Ltd. is a premier intermediate gold producer operating showplace mines in the Americas. Glamis' growth projects and mines are operated in an environmentally sound manner for the long-term benefit of its shareholders, employees and communities.
Glamis' Vision
The Strategy and Current Focus
Glamis' strategy has been to become a premier intermediate gold producer. To accomplish this, it was necessary to increase the production base beyond their maturing mines in southern California.
Strategic acquisitions were made in Central America, Nevada, and Mexico. New production from Central America (San Martin Mine in Honduras), and Nevada (Marigold Mine) will be the foundation on which the company will grow. The current focus is to establish these new mines as efficient low-cost producers, bringing the company's average total cash cost to well under $ 200 per ounce.
Additional growth beyond these new mines will come from Cerro San Pedro in Mexico, Cerro Blanco in Guatemala and the Imperial project in southern California. As Glamis grew into an intermediate producer, gold prices fell to 20-year lows. While this has slowed the rate at which it has grown, it also afforded them the opportunity to improve operations. Glamis has emerged with a strong balance sheet, no debt, and over 200,000 ounces of annual production at under $ 170 total cash cost per ounce.
With its new production base and strong balance sheet, Glamis is well positioned to achieve its goals in the next five years.
Goals
Recent News: Glamis Gold Announces Board Approval of Marlin Project
Glamis Gold Ltd. has announced that its Board of Directors has given formal approval to proceed with the final design and construction of the Marlin gold and silver project in Guatemala.
The Marlin project will be developed as a combination open pit and underground mine with commercial production slated for the first quarter of 2006. Glamis previously announced the receipt of the resolution approving the environmental impact assessment for Marlin and expects to receive the key exploitation license as early as mid-December of this year.
Kevin McArthur, President and Chief Executive Officer of the company stated, "Glamis has made considerable progress at all of its development projects in 2003, especially at Marlin. The rapid transition from exploration to full-scale development is a tribute to the dedication and skills of the Glamis team in Guatemala.
The approved plan calls for mining of 2.5 million ounces of gold over a ten-year mine life, and the deposit remains open to the west and at depth. Having reached a construction decision at Marlin, we are now moving to enhance exploration programs on land we control around each of our properties. We continue to be very successful in our efforts at Marigold Mine and are anxious to pursue exploration opportunities at Marlin, San Martin, and El Sauzal."
Fundamental Considerations: Properties
Glamis Gold Ltd. is a premier intermediate gold producer with over 20 years of experience operating efficient heap leach mines in California, Nevada, Mexico and Honduras.
Glamis remains debt-free and unhedged, and continues to advance a pipeline of potential projects in various stages of development.
Technical Considerations
The strong, multi-year up-trend should lead to prices in excess of $ 400/ounce in the near future.
The all-time high of CAD 20.53 should soon be exceeded while the up-trend-line pushes against resistance.
Our recommendation: Buy!
Peter Zihlmann
www.pzim.com
investment@pzim.com
forex@pzim.com
November 20, 2003
Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company's share price. Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.