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This is Why Gold Prices Could Rally to $2,500 in 2021(1)

Generating Approx. $100 Million Over the Last Five Years, Inca One Gold Corp. (TSXV:IO)(OTC:INCAF) Could Continue to Strike it Rich with its Two Mining Facilities in Peru(2)

The same catalysts that drove gold’s price to all-time highs above approximately $2,000 last August could still be in place.

Unless you’ve been living under a rock, you know as well as I do that the same situation could happen in 2021.

For one, a more aggressive stimulus package may be in place. Talks of trillions in stimulus seem to only be progressing, and as a result, we could see higher inflationary risk, coupled with a weaker U.S. dollar.

Granite Shares founder and CEO Will Rhind, as quoted by CNBC, also claims:

“The conditions that drove gold to an all-time high in 2020 are very much still in place. I think it’s just natural that once you get to an all-time high in an asset class, there’s some consolidation afterward, and that’s what we’re seeing right now in terms of the price. But the fundamental conditions are still here, and I believe that they will be here for the next 12-15 months minimum as well,” said Granite Shares founder and CEO, Will Rhind, as quoted by CNBC.(3)

Meanwhile, central banks worldwide seem likely to remain increasingly dovish with this current health scare. The Bank of Canada and the U.S. Federal Reserve seem to have said that rate hikes are not expected at the moment.(4)

So it comes as no surprise that gold prices have the potential to reach nearly $2,500.

Analysts at Citi, for example, appear to have a $2,500 price target and compare today’s catalysts to those of the rally between 1970 and 1980. Others, like Frank Holmes, CEO at U.S. Global Investors, claim, “it’s quite easy to see gold going to $4,000.”(5)

It’s also why a company, like Inca One Gold Corp. (TSXV:IO)(OTC:INCAF) could benefit.

The Top 12 Reasons to Consider Inca One Gold Corp. (TSXV:IO)(OTC:INCAF)

  1. Gold continues to be a store of value and a safe asset, and last traded at around $1,825.(6)
  2. Many analysts believe gold could see a similar rally in 2021 to 2020 thanks to imminent stimulus and inflationary risks.
  3. Analysts at Citi believe that gold could move to roughly $2,500 thanks to similar catalysts as the gold rally between 1970 and 1980.(3)
  4. Inca One Gold Corp. appears to be the first publicly traded gold processing company to complete permitting under Peru’s formalization legislation.(7)
  5. Inca One Gold Corp. could be one of the largest public trading processors in Peru with approximately 450 TPD permitted capacity.(7)
  6. The company claims to have seen roughly $100 million of sales in its first 5 years of operations (about $35M sales in 2019).(7)
  7. Inca One Gold Corp. also claims to have seen about three consecutive years of increased production and sales.(7)
  8. Inca One Gold Corp. could be ideally positioned for scale and growth with approximately 65% unused plant capacity.(7)
  9. Peru could be the world’s sixth-largest producer of gold.(7)
  10. Peru’s small-scale mining sector is estimated to be valued in the billions of dollars annually.(7)
  11. Inca One Gold Corp. could possess a combined 450 tons per day of permitted operating capacity at its two fully-integrated plants, Chala One and Kori One.(7)
  12. Inca One Gold seems to be targeting a 4th consecutive year of increased production and sales growth.(7)

Inca One Gold Corp. (TSXV:IO)(OTC:INCAF) Appears to Have Solid Technicals and Encouraging Fundamentals

At the moment, Inca One Gold Corp. seems to be sitting at triple bottom support at around 46 cents. However, with the case for gold appearing to grow stronger, this mining stock could have the potential to test previous highs of about 86 cents.

As seen in the above chart, the stock seems to have caught a good deal of attention. INCAF appears to have rallied from about 17 cents in early 2020 to a high of almost 86 cents by August. These moves seem to have net the stock a healthy return of nearly 406%.

Besides, the stock appears to be significantly undervalued, despite what seems to be strong fundamentals, operations, and growth potential.

Inca One Gold Corp. claims to have had around $100 million in sales in its first 5 years of operations (about $35M sales in 2019) and claims to have had about three consecutive years of increased production and sales.(7)

Not surprisingly, the company also appears to be targeting a 4th successive year of this same type of pace.

Thanks to what appears to be exemplary Q4 growth, it could very possibly become a reality. 

  • Total revenue of US$10.1 million, a 3% growth from Q4 2019 revenue ($9.79 million).
  • Gold production reached roughly 5,399 ounces.
  • Deliveries an estimate of 11,385 tons for the quarter.
  • Processed 11,459 tons, averaging 125 tons per day throughput.(8)

When you also consider that Inca One Gold Corp. could be one of the largest public trading processors in Peru- a mineral-rich emerging market that could be the sixth largest producer of gold in the world and valued in the billions of dollars annually- the growth potential seems even more enticing.(7)

When you also realize that Inca One Gold Corp claims to have around 65% of unused plant capacity, the growth potential seems to be impossible to ignore.(7)

So what else seems to be driving this recent growth?

Strong demand for ore processing services, from an expanded customer base, for one.

This customer base seems to have emerged from the additional 34,600 small-scale miners that entered the marketplace under the formalization amnesty announced early in 2020 by the Peruvian Mining Ministry. Specifically, deliveries in December alone seem to have reached their highest single monthly total in two years, as nearly 5,011 tons of raw material was delivered to both of the company’s plants. This seems to have an astounding increase of roughly 57% from the prior month of November 2020 (3,194 tons).(8)

The company seems to have processed 11,459 tons of material in Q4 2020-an an increase of approximately 81% from the prior quarter (6,347 tons). This represented a throughput of roughly 125 tpd in Q4 2020, which was also the high for the year.

Inca One also had its highest daily throughput this past December as the company seems to have processed an average of 134 tpd for the month- an increase of around 21% monthly. Of particular note, Inca One claims to have also reached an all-time daily production record of 322 tons per day during December.(8)

“This past year will be remembered as being influenced by a global [health issue] that gravely impacted the world and economic prospects of the global economy,” stated Inca One President and CEO, Edward Kelly.  “Although the effects lasted throughout the entire year, the Company focused on efficiency and sales, finishing 2020 on a strong note, with robust production, and near-record deliveries in December, including our strong start to 2021.”(8)

“However, our most significant achievement was the tremendous operational performance of our Peruvian team in the face of a challenging business environment that drove not only our quarterly results but our entire 2020 sales.  We are encouraged by this strong finish to the year, and we look forward to building on this momentum, supported by a strengthened gold price and re-established gold market.”

So Why Pay Close Attention to Inca One Gold Corp.?

Inca One Gold Corp (TSXV:IO)(OTC:INCAF) is a Canadian-based gold producer operating two fully permitted gold ore processing facilities in Peru. As mentioned before, Peru appears to be the world’s sixth-largest producer of gold and possesses a mining sector that seems to be estimated by government officials to be valued at billions of dollars annually.(9)

Currently in its sixth year of commercial production, the company seems to be led by an experienced and capable management team that looks to have established Inca One Gold as a trusted leader in servicing government permitted, small scale miners in Peru.

Inca One Gold Corp. could also potentially possess a combined 450 tons per day permitted operating capacity at its two fully-integrated plants in Peru, Chala One and Kori One.(9)

Inca One Gold Corp.’s Mines Could be Some Key Players 

Its Chala One facility claims to have:(11)

  • Permitted capacity of nearly 100 tons per day; max operating capacity of approximately 150 tons per day
  • Fully integrated processing facility, with in house, metallurgical and chemical labs, desorption, and smelting facilities
  • Proximity to a high concentration of small scale miners for mill feed
  • Around 42 acres of land providing ample room for plant expansion
  • Located in a highly concentrated, high-grade, small-scale mining district

The Chala One Plant now appears to constitute a full-service milling facility. The plant seems to have weighing, sampling, and metallurgical test facilities on site, along with crushing, grinding, and carbon-leaching circuits, full material handling, desorption, smelting, and tailings disposal facilities.

At this facility, the company usually purchases gold-bearing material at a discount to spot prices from legal small-scale miners after careful and systematic testing. The mineral is then either stockpiled or processed to produce loaded carbon and desorbed and smelted on-site to create its own gold dore.

Inca One Gold Corp. claims to have entered into a multi-delivery letter of agreement (LOA) with several legal small-scale miners. The company’s target appears to be having 50 percent of its mill feed under LOAs, with the remaining 50 percent of its mill feed coming from spot purchases in the market.

Its Kore One facility seems to have:(13)

  • Maximum Permitted capacity of around 350 tons per day
  • Fully integrated processing facility, with in house, metallurgical and chem labs, desorption, and smelting facilities
  • Proximity to a high concentration of small scale miners for mill feed
  • About 42 acres of land providing ample room for plant expansion
  • Located in a highly concentrated, high-grade, small-scale mining district

Koricancha appears to be a custom-built, fully operational, industrial gold ore processing facility, featuring a carbon-in-leach gold circuit, strategically situated in the Arequipa region of Peru. It seems to be located at sea level, fully serviced by excellent infrastructure just 10 minutes from the Pan American Highway, and within the Nazca-Ocona gold belt in Southern Peru.

Since January 2018, the facility seems to be built out and permitted for around 350 TPD and operating at an average of approximately 135 TPD. It has also been servicing the small-scale mining sector of Peru in that period, seems to hold a currently processed stockpile.

Inca One Gold Corp. (TSXV:IO)(OTC:INCAF) is Led by A Successful Team

When evaluating a company’s potential, it’s essential to examine its management’s quality. Inca One Gold Corp. appears to have a sound and experienced team in place.

Edward Kelly, BBA
President, CEO & Director

Edward Kelly has an over 15-year career in capital markets, managing and running firms in diverse sectors from natural resources to technology. Held Senior Management positions and directorship with several public companies on the TSXV Exchange.

Kevin Hart
Chief Financial Officer

Mr. Hart is a Chartered Professional Accountant with over 20 years of international finance, administration, and governance experience for mining companies listed on the TSX and NYSE. Most recently, he was Corporate Controller for Asanko Gold Inc. During his tenure, Asanko transitioned into a mid-tier gold producer in Ghana, West Africa. Before Asanko, Mr. Hart held senior finance and management positions for several companies founded by the Hunter Dickinson (“HDI”) group. Those companies included Farallon, which built the G9 Mine in Mexico and was sold to Nyrstar in 2011. Mr. Hart was also involved in Taseko’s Gibraltar Copper Mine’s restart in Williams Lake, BC.

Mark St. John Wright, B.Sc. MBA
VP Operations & New Projects

Trained as a research chemist & process engineer with experience in heavy industry, metal purification, and extraction. Fast Moving Consumer Goods sector expertise in product research & development, production, logistics, and distribution. Consultant for KMPG and District Sales Management with Loomis & DHL. An entrepreneur with multiple successful networking and internet marketing businesses.

Ivan Salas, MBA
Country Manager

Ivan Salas is an executive with proven experience in B2B and business management, with 12+ years of managerial achievements, directing and accelerating growth from start-ups to transnationals in Peru, with specific expertise in the Mining and Energy sectors.

Eduardo Candela
Director, Plant Operations

Metallurgy professional with over 20 years of international experience worked in the Middle East and South America, optimizing the production of multiple commodities, including Gold, Silver, and Antimony. Worked most of his career with world-class mining companies, first Barrick Gold (Pierina Mine, Peru), then Newmont Mining (Yanacocha Mine, Peru), and most recently with Strategic and Precious Metals Processing (SPMP, Oman) for Antimony production. Mr. Candela is a specialist in optimizing a variety of metallurgical processes, focusing on HSE, efficiency, and continuous improvement.

Bruce Bragagnolo
Chairman of the Board Director

Mining executive Mr. Bragagnolo is the co-founder and former Chief Executive Officer of Timmins Gold Corp., a Mexican-focused gold producer, and the co-founder and the former CEO of Silvermex Resources Ltd. This silver explorer was acquired by First Majestic Silver in 2011 for a market capitalization of $120 million. While at Timmins Gold, Mr. Bragagnolo oversaw the administration, business development strategy, and the financing of the company through its IPO and the acquisition and construction of its San Francisco Mine. He spearheaded the subsequent listing on the TSX and NYSE-MKT and the acquisition of the Caballo Blanco Project, the Ana Paula Project, and the El Sauzal Mill. Mr. Bragagnolo has been responsible for structuring and raising over $120 million in equity and debt for Timmins Gold and overseeing the company’s growth as it transitioned from junior developer to a +100,000 oz. per year gold producer with a peak market capitalization of over $450 million. Mr. Bragagnolo is a member in good standing of the Law Society of British Columbia. He graduated from the University of British Columbia Law School in 1983 and was called to the bar in 1984. From then until 2007, he practiced law in Vancouver, emphasizing securities law, start-ups and mergers and acquisitions, at which point he gave up his practice to become the CEO of Timmins Gold and Silvermex.

Rodney Stevens
Director

Mr. Stevens is a CFA charter holder with over ten years of experience in the capital markets, first as an Investment Analyst with Salman Partners Inc., then as a merchant and investment banker. While at Salman Partners, Mr. Stevens was recognized by Starmine in 2007 as a top-rated analyst for the metals and mining industry. Throughout his career, Mr. Stevens has been instrumental in assisting in financings and M&A activity worth over $1 billion in transaction value.

Adrian Morger
Director

Adrian Morger is a European based asset manager with over 20 years of experience in the banking industry. After studying Business and Economics from 1998-2001 at the University of Applied Sciences in Chur, Switzerland, he worked as Fund Manager of Alternative Investments at Internationale Fonds Service AG, then Head of Fund and Manager Selection V.P. Bank AG in Vaduz, Liechtenstein. In March 2009, he founded Everest Wealth Management AG, followed in January 2015 by Falknis Wealth Management AG. His asset management businesses also provide direct loans to mining companies.

The Top 12 Reasons to Consider Inca One Gold Corp. (TSXV:IO)(OTC:INCAF)

  1. Gold continues to be a store of value and a safe asset, and last traded at around $1,825.(6)
  2. Many analysts believe gold could see a similar rally in 2021 to 2020 thanks to imminent stimulus and inflationary risks.
  3. Analysts at Citi believe that gold could move to roughly $2,500 thanks to similar catalysts as the gold rally between 1970 and 1980.(3)
  4. Inca One Gold Corp. appears to be the first publicly traded gold processing company to complete permitting under Peru’s formalization legislation.(7)
  5. Inca One Gold Corp. could be one of the largest public trading processors in Peru with approximately 450 TPD permitted capacity.(7)
  6. The company claims to have seen roughly $100 million of sales in its first 5 years of operations (about $35M sales in 2019).(7)
  7. Inca One Gold Corp. also claims to have seen about three consecutive years of increased production and sales.(7)
  8. Inca One Gold Corp. could be ideally positioned for scale and growth with approximately 65% unused plant capacity.(7)
  9. Peru could be the world’s sixth-largest producer of gold.(7)
  10. Peru’s small-scale mining sector is estimated to be valued in the billions of dollars annually.(7)
  11. Inca One Gold Corp. could possess a combined 450 tons per day of permitted operating capacity at its two fully-integrated plants, Chala One and Kori One.(7)
  12. Inca One Gold seems to be targeting a 4th consecutive year of increased production and sales growth.(7)

Source 1: https://www.cnbc.com/2020/11/24/gold-to-2500-two-etf-analysts-on-citis-bullish-call-for-2021.html
Source 2: https://www.incaone.com/_resources/presentations/corporate-presentation.pdf
Source 3: https://www.cnbc.com/2020/11/24/gold-to-2500-two-etf-analysts-on-citis-bullish-call-for-2021.html
Source 4: https://www.fool.ca/2021/02/02/3-reasons-to-buy-gold-stocks-today/
Source 5: https://www.usfunds.com/in-the-news/frank-holmes-calls-4-000-gold/
Source 6: https://goldprice.org
Source 7: https://www.incaone.com/_resources/presentations/factsheet.pdf
Source 8: https://www.incaone.com/news/index.php?content_id=269
Source 9: https://www.incaone.com/company/about-us/
Source 10: https://www.incaone.com/_resources/presentations/corporate-presentation.pdf
Source 11: https://www.incaone.com/operations/chala-one/
Source 12: https://www.incaone.com/_resources/presentations/corporate-presentation.pdf
Source 13: https://www.incaone.com/operations/kori-one/

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OTC:INCAF
TSXV:IO
Company Contact

INCA ONE GOLD CORPORATION
Suite 850 - 1140 West Pender St.
Vancouver, BC V6E 4G1
Canada

www.incaone.com
604-568-4877
[email protected]

What They Do

Inca One Gold Corp is a Canadian mineral resource company and mineral processing company. It is engaged in the business of developing gold-bearing mineral processing operations in Peru. Its activities consist of the production of gold and silver from the processing of purchased minerals. It provides its service basically to small-scale miners. It’s Chala One milling facility located in Chala, Southern Peru. The Koricancha ore processing facility located in Peru. The company operates through a gold milling facility and generates revenue from the same.