Brad Langille: This Will Be The Biggest Silver Bull Market Of My Career
Summary
GoGold's Parral tailings operation generates roughly $60 million a year in after-tax free cash flow, funding the Los Ricos South build without new equity.
Los Ricos South's published $227 million capex now points to about $260 million after 18 months of Mexican mining inflation, still carrying a 12 percent contingency.
Langille calls this likely the biggest silver bull market of his career; his answer is low-cost projects running about $12 silver-equivalent all-in sustaining costs.
Los Ricos South targets a June 2028 first pour; the high-grade Eagle zone should then generate $500-600 million US after tax in 18 months.
Success would lift GoGold from about 2 million to 9 million silver-equivalent ounces per year, with Los Ricos North pointing toward 15-17 million.
Key points on Gogold Resources
- Langille says Parral's roughly $60 million a year in after-tax free cash flow will fund the Los Ricos South build, so the company plans no more equity raises.
- Los Ricos South has permits in hand and a published $227 million feasibility capex, which Langille now puts near $260 million after 18 months of Mexican mining inflation, still including a 12 percent contingency.
- The project targets a first pour in June 2028 after a 24-month build and six-month ramp-up, with mill foundations starting in January and mill delivery expected in the first half of 2027.
- About a year into production, the high-grade Eagle zone is expected to generate $500-600 million US after tax over an 18-month period at current commodity prices.
- Langille says the $284 million cash balance should not drop below about $50 million during the build, and Los Ricos North could later lift output toward 15-17 million silver-equivalent ounces a year.
Brad Langille's takeaways
- Top takeaway Langille argues this will probably be the biggest silver bull market of his career, while admitting he is better at building mines than predicting prices.
- His answer to commodity price risk is margin: build low-cost projects running about $12 per silver-equivalent ounce all-in sustaining costs, because the downside is what you worry about.
- He argues juniors should build mine-building competency in house rather than count on being bought out, since a buyout business plan puts the future in somebody else's boardroom.
- He commits to on-time, on-budget execution at Los Ricos South with frequent progress updates, and sees possible upside to the schedule from early ore stockpiling.
Jay Martin's takeaways
- Top takeaway Martin tells his commodity university students to expect about 25 percent cost inflation between a pre-feasibility study and a feasibility study.
- He notes GoGold raised around $300 million in 2025, pairing new cash with Parral cash flow so the build proceeds without further dilution.
- He likens a preliminary economic assessment to a back-of-the-napkin sketch that gets more honest as studies advance to feasibility.
- He presses Langille to be held to on-time, on-budget delivery and books a Q1 check-in on mill construction.