While gold alone can be a great investment and should form a part of every portfolio, Clavo Rico is confident that its shares will trade in a public market and hopes to provide its shareholders with a market multiple of its forward earnings. The Company’s goal is to establish itself as a gold mining company with a market capitalization in excess of $500 million.
Clavo Rico’s predecessor began production in January 2005 , and in order to reach the valuation goal that Clavo Rico has set for itself, Management has committed to continue to increase production. During 2011, the company invested heavily in plant and equipment in the first phase of expansion, including the installation of an ADR plant to efficiently process the ore on-site. The second phase of expansion was begun in late 2013, with the goal of being completed by mid-2014.
A second source of improving a company’s value is to show increased ore reserves. The Company has increased its geology and exploration department and is continually investing in programs to gather more information about the underlying geology and vein structures. Drill results clearly demonstrate high value intercepts in the sulfide zone. Further drilling is needed to quantify these values and calculate an ore reserve in the sulfide zone at the Clavo Rico mine.