Mining Co. Makes Gold Breakthrough In Liberia

1. Pasofino Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of  Pasofino Gold Ltd. 
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* Disclosure for the quote from the Clive Maund article published on April 8, 2025

1. For the quoted article (published on April 8, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.

Pasofino Gold Ltd. (VEIN:TSX.V; EFRGF:OTCQB; N07:FSE) announced it has submitted its annual audited financial statements for the fiscal year ending April 30, 2025, along with the accompanying management's discussion and analysis, the company said in a release.

The company reported a net loss of CA$21,051,280 for the fiscal year ending April 30, 2025, resulting in a basic and diluted loss per share of CA$0.18. This is in contrast to the previous year, which saw a net loss of CA$25,446,589 and a basic and diluted loss per share of CA$0.34 for the year ending April 30, 2024. The company did not generate any revenue during either period.

According to the release, the losses were mainly due to exploration expenses, management fees, professional fees, office and general expenses, director fees, investor relations costs, communications and travel expenses, share-based payments, a foreign exchange loss, an unrealized loss on marketable securities, and a change in the fair value of royalty liability, which was partially offset by a gain on debt extinguishment.

However, on August 26, the company announced the completion of its Phase One update to the 2022 feasibility study for the Dugbe Gold Project in Sinoe County, Liberia. The fully updated and optimized final study is expected to take 10 months and cost as much as CA$6 million to finish, the company said.

The gap analysis is an important step for the company moving so Pasofino can "present a clear and defined path to the market of completing the update to the feasibility study, and show visibility towards project financing, final investment decision, and eventually project construction," Chief Executive Officer Brett Richards said when it was released. "I continue to maintain that Dugbe is one of the strongest late-stage gold projects in Africa today; and Pasofino is one of the most under-valued gold developers in the capital markets today as well."

According to the management's discussion and analysis filed with the financial results, "The company's total assets on April 30, 2025, were CA$895,951 (April 30, 2024 - CA$2,132,354) against total liabilities of CA$27,878,872 (April 30, 2024 - CA$14,036,213). The decrease in total assets of CA$1,236,403 resulted from spending on exploration related activity and operating costs, offset by cash received from the private placement completed in October 2024."

Promising Economics

The previously disclosed feasibility study for Dugbe detailed a 14-year mine lifespan, with an average yearly gold output of 172,000 ounces, peaking at 200,000 ounces during the first five years, and a life-of-mine head grade of 1.30 grams per tonne. The 2022 feasibility study estimated capital expenditures at US$435 million and projected a post-tax net present value (NPV) of US$530 million at a gold price of US$1,700 per ounce, with a post-tax internal rate of return (IRR) of 23.6% and a payback period of 3.3 years.

With spot gold now trading closer to US$3,400 per ounce, the project's potential economic returns seem even more promising, according to the company. Dugbe spans 2,078 square kilometers within the Birimian Supergroup, a renowned host of West African gold deposits.

*On April 8, Technical Analyst Clive Maund pointed out that the company was considerably undervalued, based on both technical and fundamental aspects. Maund observed that the intrinsic value of Dugbe continues to increase, bolstered by strong gains in gold prices. He described Dugbe as a large-scale, economically appealing gold project in Liberia, which he characterized as politically stable and conducive to mining development. He also highlighted the project's strong infrastructure, long projected mine life, and significant untapped exploration potential.

He updated his analysis on June 27, writing, "Pasofino Gold is looking (like a) very good value here. Following a decline from its September highs, a base pattern has formed this year that may be described as a hybrid between a Double Bottom and a Head-and-Shoulders bottom. Long-term charts reveal that this Double Bottom sits within a much larger low base pattern that started to form back in 2022."

He continued, "With upside volume building up this year, especially since April and its Accumulation line trending higher since early 2022 and even making new all-time highs in recent weeks, Pasofino Gold appears to be building up to begin a major new bull market and it is accordingly rated a strong buy here, especially as it has just dipped to a good entry point not far above its rising 50-day moving average."

The Catalyst: Gold Prices Rise

Gold prices rose as traders assessed U.S. economic data and the Federal Reserve's future amid escalating legal battles over President Donald Trump's attempt to dismiss Governor Lisa Cook, reported Yvonne Yue Li for Bloomberg on August 29. An emergency hearing for Cook was underway in Washington, where a judge was considering whether to allow her to continue her duties.

Trump's unprecedented move to fire Cook raises further questions about the Fed's independence, a key factor in managing inflation and economic growth. The Fed's interest rate policies often influence the gold market. 

"Another layer of geopolitical uncertainty related to risks around the Fed and overall institutional independence is moving flows into gold," said Frank Monkam, head of macro trading at Buffalo Bayou Commodities, according to the Bloomberg report. Expectations of increased bullion purchases by central banks in September also supported the market, he noted.

Gold is often considered a safe haven asset during political and economic instability and typically benefits from a lower interest rate environment. Prices climbed as much as 0.9% to US$3,446.27 an ounce on Friday, approaching the all-time high of US$3,500.10 reached in April.

Meanwhile, U.S. data on Friday showed persistent inflation, with the Fed's preferred price index remaining well above policymakers' comfort zone. However, U.S. consumer spending increased in July by the most in four months, indicating strong demand. Traders continue to bet on a high likelihood of a U.S. interest rate cut in September. Spot gold was up 0.8% at US$3,444.94 an ounce as of 11:24 a.m. in New York.

Ownership and Share Structure

According to Refinitiv, nine strategic entities own 66.45%, or the lion's share, of Pasofino. Of these investors, the Top 3 are Hummingbird with 46.78%, ESAN with 8.84%, and Mansa Resources with 4.07%.

The rest is in retail.

Pasofino has 127.03 million outstanding shares and 42.62 million free float traded shares. Its market cap is CA$55.73 million. Its 52-week trading range is CA$0.38–CA$0.80 per share.