Our Stock Pick Of The Month For November 2025 Is Pasofino Gold (TSX.V:VEIN)

Core Viewpoint - Pasofino Gold is highlighted as a promising investment opportunity due to its advanced Dugbe Gold Project in Liberia, especially with gold prices nearing $4,000 per ounce, making it an attractive near-production play [1][6]. Company Overview - Pasofino Gold's main asset is the Dugbe Gold Project located in Liberia, which is now considered a stable mining jurisdiction in West Africa after historical challenges [4]. - The company has a 25-year Mineral Development Agreement (MDA) with the Liberian government, ensuring a 10% government ownership and a structured tax framework until 2044, with the possibility of a 25-year renewal [5]. Resource and Production Estimates - The company has a total gold resource of approximately 3.9 million ounces, with 3.3 million ounces classified as Measured and Indicated, and 600,000 ounces in the Inferred category [6]. - The estimated mine life is over 14 years, with an average production of about 171,000 ounces of gold annually, and over 200,000 ounces per year for the first five years of commercial production [6]. - At a gold price of $4,000 per ounce, the company is projected to generate approximately CA$500 million in annual cash flow for 14 years, totaling nearly $7 billion in free cash flow over the mine's life [12]. Financial and Corporate Structure - The company recently completed a CA$12 million financing, with insiders purchasing CA$6.4 million of this amount [10]. - The corporate share structure is tightly held, with approximately 50.9% owned by a large shareholder, Mansa Resources, resulting in only about 20% of shares available for public trading [11]. - The current stock price reflects a valuation of roughly $20 per ounce in the ground, significantly lower than many comparable companies [12]. Management - The CEO, Brett Richards, has 37 years of experience in the mining and metals industry, with a strong track record in operational management and project development [7][8]. - Richards has personally invested over CA$1 million into the stock and holds options, aligning his interests with those of shareholders [9]. Market Context - The small-cap and mid-tier mining sector is expected to see increased mergers and acquisitions as companies seek to enhance production and cash flow amid rising gold prices [2][3].