True Gold Mining (TGM.V) has announced it was able to re-start the construction of the Karma project late last month, after the unrest in Burkina Faso had put the project at risk. The central government in Ouagadougou had to step in to ensure the locals that the Karma project wouldn’t cause any damage to the village, and after a six month negotiation period, True Gold is finally able to get back to the mine site and start building it again.
$62M has already been spent or committed at the project, and the construction now seems to be in the final straight line towards the finish line. True Gold expects the first gold pour to occur at the end of the first quarter of 2016, so we are counting down the months until True Gold starts to generate a positive free cash flow.
Disclosure: The author holds a long position in True Gold Mining. Please see our disclaimer for current positions.