From Drill to Dividend, Pasofino Gold is Set to Deliver Africa’s Next Gold Windfall

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• Pasofino owns 100% of a 3.9-million-ounce gold project in Liberia, with full feasibility, permits in progress, and institutional backing already in place.
• With gold trading above US$3,300, the company’s Dugbe project is positioned to generate up to US$472 million in free cash flow annually.
• Unlike most juniors, Pasofino plans to return profits directly to shareholders through dividends, not by building a mining empire.

As gold holds strong above US$3,300/oz and institutional sentiment remains bullish, growth-stage miners with scale, stability, and near-term cash flow potential are moving to the front of the investor queue.

Among those leading the pack is Pasofino Gold (VEIN.VN) (EFRGF) (FSE: N07A), a Canada-based company in full control of one of West Africa’s largest undeveloped gold projects and driven by an aggressive, cash-return model that’s almost unheard of in the sector.

The company’s Dugbe Project in Liberia, which hosts 3.9 million ounces of gold in measured, indicated, and inferred resources at an average grade of 1.37 grams per tonne, has already gone through a definitive feasibility study.

That study, completed in 2022, outlined a 14-year open-pit operation producing 171,000 ounces of gold per year, with the first five years front-loaded to exceed 200,000 ounces annually. Capital expenditure is pegged at US$435 million in pre-inflation dollars.

“The project is no longer theory. It’s shovel-ready and backed by institutional capital … the bank now is a 51% shareholder of Pasofino.”

— Brett Richards, CEO & Executive Director.

Getting a makeover in a $3,300/oz gold world

When the original Dugbe feasibility study was completed, gold was modeled at US$1,600/oz for the pit and US$1,700/oz for the mine plan, which is well below current prices. The company is now updating the study to reflect current market conditions, targeting a Feasibility Study (FS) by Q1 2026.

“You can imagine that in today’s gold price environment … the revenue line is going to be very much different now,” said Richards.

At today’s gold prices, that difference would translate into free cash flow projections of up to US$472 million annually, turning Dugbe into one of the highest-margin undeveloped gold opportunities in the world.

Only 8% of the company’s 2,000 square kilometre land package has been explored to date, leaving considerable upside for satellite discoveries and resource expansion, said Richards.

“The production profile could stretch well beyond 14 years, and we are confident that the 200,000-ounce-per-year output can be extended if drilling continues to confirm the surrounding potential.”

A mining renaissance in Liberia

For Richards, who has spent more than 25 years building mines across Africa, Liberia stands out as the most cooperative jurisdiction he has worked in.

“Liberia is by far the best jurisdiction I’ve ever been in — stable, safe, trades in U.S. dollars, and genuinely supportive of mining,” he said.

That assessment is more than anecdotal. The Government of Liberia has already passed Pasofino’s Mineral Development Agreement into law and holds a 10% free carried interest in the project.

Environmental and social impact assessments, along with the Resettlement Action Plan, are in their final stages ahead of formal construction permitting.

Liberia’s support isn’t just political. The country’s involvement in the project reflects a strategic commitment to economic development and international investment.

Unlike other jurisdictions where permitting and stakeholder engagement can drag on for years, Liberia has taken an active role in fast-tracking the Dugbe Project, said Richards’, whose team has also taken the lead on ESG, with a carbon-positive mine plan, lined tailings systems, and biodiversity offsetting already factored into the engineering.

Cash flow, not empire-building

While many gold juniors pitch a build-and-flip story or dream of becoming mid-tier producers, Pasofino is taking a different path.

“We don’t want to build a big gold company,” Richards said. “I want to make my shareholders a lot of money. Our plan is to distribute all the cash every year to our shareholders.” 

That focus on dividends — rare in the gold development world — has become one of Pasofino’s biggest differentiators. At full production, the project is expected to deliver operating costs of just over US$1,000 per ounce, producing margins north of US$2,100/oz in the current pricing environment.

The 2022 feasibility study assumed US$1,700 gold. The updated economic model is now being optimized using US$2,700 gold as a constraint, with current spot prices far exceeding that.

At these levels, the project’s post-tax NPV is already four times its capex. With peer producers trading at 3.5 to 6 times free cash flow, Pasofino’s internal modelling points to a potential valuation between US$1.6 billion and US$2.8 billion. Compared to the company’s current C$60 million market capitalization, that implies a 20- to 50-fold re-rating if execution continues on schedule.

Driving that execution is the strength of Pasofino’s financial structure. With 51% of the company held by institutional backers — most notably the bank that acquired its stake through ARX Resources — Pasofino’s capital plan is unusually mature for a company at this stage.

Richards is currently raising US$75 million in equity and US$150 million in debt, with the balance to be covered by the company’s existing financial partner. That full-stack funding plan aligns all interests toward a single goal: getting the Dugbe mine built and generating cash.

As the feasibility update nears completion and permitting advances, Pasofino Gold is entering a decisive window. For investors looking for exposure to real ounces, real leverage to gold prices, and a management team laser-focused on returning capital — not chasing size — Pasofino offers a rare opportunity.

To learn more about Pasofino Gold, visit their website here.

For the latest updates, follow Pasofino Gold on social media: Facebook, X, LinkedIn, and YouTube

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