Proximity to Production Should Not Be Ignored
Investment Thesis. Revival Gold owns two past-producing mines with total gold resources of
~6Moz. The company has focused on the oxide portion of the resource and has completed a PFS
study (July 2023) on Beartrack and PEA (March 2025) on Mercur, both envisioning heap leach (HL)
processing. We see the potential for Revival to graduate from developer to gold producer in 2029
and grow to a 150Koz+ producer by 2031.
Event
Only about one-quarter of the companies in our Takeover Twenty (gold developers)
have a reasonable prospect, in our opinion, of advancing their projects to production
before 2030. Revival has that proximity to production, the importance of which should
not be overlooked or underestimated.
Highlights
- Well-Funded and Strategic Partners | Revival completed a C$29M financing in
July 2025, which brought in EMR Capital Management as a strategic shareholder
and Dundee Corp. also participated to maintain its interest. The strong cash balance
(~C$18.5M remaining) allows Revival to continue to advance drilling and project
studies to a formal construction decision on Mercur. These strategic partners are
well-versed in moving projects through development.
- Two Projects Can Be Better than One | While investors (and potential acquirers)
often prefer a single large project, there are some distinct advantages to RVG’s
strategy of moving two development projects forward at the same time. This phased
growth toward 150Koz+ annual production reduces the initial capex to be funded
prior to production, and additionally this addresses the “single-asset” risk of a typical
developer moving to junior producer.
- Multiple Sources of Upside & Optionality | The heap leach developments
outlined at Mercur (Phase 1) and Beartrack (Phase 2) are the first two phases of
planned production, exploiting the (relatively) simple oxide mineralization and which
in combination should grow RVG to ~150Koz of annual production. There is huge
optionality in the known sulphide resources at Beartrack which could conceptually
include a selective high-grade underground (Phase 3) and a much bigger open pit
to exploit the large (~3.5Moz) defined low-grade sulphide resource (Phase 4). Our
current valuation gives minimal value to anything beyond the first two phases. We
view the exploration upside as abundant at both properties, but particularly at
Mercur with very little exploration conducted outside the current resource area.
