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- Jim's Oil & Mining Letter - January 18, 2026
Jim's Oil & Mining Letter - January 18, 2026
AG AG.TO ORLA OLA.TO TAU.V THSGF ARIC.V AWLRF PANR.L PTHRF GROY OBM.ASX ESGFF EOG.L EGN.F IPX IPX.ASX SEI.V SEUSF RECO.V RECAF EOG.V ECAOF ECO.L and more
Oilman Jim
January 18, 2026
A modern-day gold rush is unfolding across 71,000 acres in proven gold country. Local artisanal miners already hit 108 grams per tonne gold. Now, this company is drilling an initial 10,000 metres to unlock what could be a multi-million ounce deposit and drills are turning this month.
Interesting news last Thursday and Friday:
First Majestic Silver (AG AG.TO) reported Q4 2025 attributable production of 7.8 million silver equivalent ounces, including a record 4.2 million ounces of silver (+77% year-on-year), with contributions from Los Gatos and improved performance at San Dimas. The company also completed 57,305 metres of drilling during the quarter. First Majestic delivered FY 2025 production of 31.1 million silver equivalent ounces, including a record 15.4 million ounces of silver (+84% year-on-year), meeting or exceeding its original and revised guidance. The company noted that silver equivalent reporting was affected by a lower by-product conversion ratio amid higher silver prices. The company provided 2026 guidance of 13.0–14.4 million ounces of silver, 116,000–129,000 ounces of gold and by-product metals, with consolidated all in sustaining cost of $26.15–$27.91 per payable silver equivalent ounce, and expects expansion projects to support higher throughput, with completion targeted in H2 2026. First Majestic outlined 2026 capital expenditure plans of $213–$236 million (including $154–$171 million for expansion), focused on Santa Elena mill expansion to 3,500 tonnes per day, increasing Los Gatos throughput towards 4,000 tonnes per day, studies/early development at Navidad and Santo Niño, fleet purchases at La Encantada, and extensive exploration of about 266,000 metres. The company also announced an increase to its dividend policy from 1% to 2% of net quarterly revenues, effective for revenues earned from 1 January 2026. The first payment at the higher level is expected with the Q1 2026 dividend in May 2026.
Orla Mining (ORLA OLA.TO) reported results from an updated, optimised feasibility study for its South Railroad Gold Project in Nevada and said its board has approved spending to begin detailed engineering, procurement and project execution, with construction start subject to receiving all required permits. The study outlines an after-tax NPV5 of $783 million and a 48% IRR at a $3,100/ounce gold price (NPV5 is $1.7 billion with a 95% IRR at $4,500/ounce), with an after-tax payback period of about two years. The plan contemplates average annual gold production of about 130,000 ounces in the first five years at an average all in sustaining cost of approximately $1,485–1,505/ounce over an estimated 10-year mine life. Initial capital is estimated at about $395 million, reflecting scope changes such as a two-stage crushing circuit and updated water management. Orla expects to fund development from cash on hand and operating cash flow. Full construction is targeted to begin in mid-2026 following final permits, with completion expected in about 18 months.
Thesis Gold (TAU.V THSGF) filed its NI 43-101 technical report supporting the 2025 pre-feasibility study for the wholly owned Lawyers-Ranch gold-silver project in northern British Columbia’s Toodoggone District. The study highlights at a base case $2,900/ounce gold and $35/ounce silver, a pre-tax NPV5 of $3.73 billion and a 73.5% IRR; after-tax NPV is $2.37 billion with a 54.4% IRR and an estimated payback period of just over 1 year. Mine plan metrics include a 15-year life of mine, average payable production of 266,000 gold equivalent ounces per year in the first three years and 187,000 gold equivalent ounces per year over life of mine, from a maiden mineral reserve of 76.16 million tonnes grading 0.97 grams per tonne gold and 28 grams per tonne silver (1.33 grams per tonne gold equivalent). Estimated initial capital expenditure is $736.2 million with average all-in sustaining costs of $1,185 per gold equivalent ounce. Silver is expected to account for about 23% of revenue.
Supermajors are all fighting over this country – one of the most watched new frontiers on the planet. But while the biggest players deploy billions, one small public company has concentrated exposure to what comes next.
Awalé Resources (ARIC.V AWLRF) reported step-out drilling at the Charger target (Odienné Project, Côte d’Ivoire) confirming a newly discovered, shallow high-grade gold zone (Charger 2) about 200 metres south-west of Charger 1, potentially extending the system along strike. Key intercepts from Charger 2 included: 16.3 grams per tonne gold over 1 metre within 2.6 grams per tonne gold over 10 metres (OEDD-158), 12.2 grams per tonne gold over 1 metre within 2.2 grams per tonne gold over 10 metres (OEDD-156) and 12.1 grams per tonne gold over 1 metre within 4.8 grams per tonne gold over 4 metres (OEDD-159). The new zone was identified by targeting a second demagnetised anomaly and shows similar geology, alteration and mineralisation style to the original Charger discovery; three additional demagnetised zones at Charger remain untested. Drilling at Charger 1 continues, with further results expected in the coming weeks, as part of a 100,000-metre programme with nine rigs active across the Odienné Project.
Pantheon Resources (PANR.L PTHRF) announced that it has raised $10 million (before expenses) through a conditional placing of 106,209,678 new shares at 7.0p per share, led by Oak Securities, to support near-term appraisal work and general working capital. Proceeds will support planned resumption of Dubhe-1 flow testing, including acquiring and analysing well data and preparing procedures for a cost-effective start-up and continuation of the testing programme. Remaining funds will be used to reprocess existing Kodiak seismic data to improve reservoir imaging, to support a potential appraisal well as early as the 2026/27 winter season (subject to further financing) and to assist ongoing farm-out discussions. Admission of the new shares to AIM is expected around 22 January 2026 (or no later than 30 January 2026), and the company said the fundraise plus existing cash is expected to provide working capital until Q4 2026.
Gold Royalty (GROY) has agreed to acquire a net smelter return royalty on the Borborema gold mine and property from Dundee Corporation for total consideration of $45 million, comprising $30 million in cash plus 3,571,429 newly issued shares (based on a 20-day VWAP of $4.20). The royalty covers the Aura Minerals-operated Borborema Project in Brazil and is set at 1.5% of net smelter returns on the first 1.5 million ounces of payable gold production and 1.0% until 2.0 million ounces are produced. The transaction is subject to customary conditions and is expected to close this month. Taurus Mining Royalty Fund has indicated it intends to acquire an economic interest in half of the acquired royalty for $22.5 million in cash, subject to further agreements and conditions. The additional royalty complements Gold Royalty’s existing Borborema royalty (2.0% net smelter return stepping down to 0.5% after 725,000 ounces), which includes operator buyback rights and an option for Gold Royalty to receive a further 0.5% net smelter royalty upon repayment of its gold-linked loan.
Focused on gold & silver; three royalties expected to be in full production early this year, with a world class development-stage gold mine targeting production start in early 2028
Royalty pipeline forecast to deliver 4,000 gold-equivalent ounces this year, growing to over 28,000 ounces within four years
$10 million raise at $2 per share, following successful oversubscribed $6 million seed round
Most royalty companies today trade at more than 30 times earnings; this pre-IPO valuation is only a fraction of peers
Major opportunity ahead of planned public listing in the first half of this year
Team with a proven track record of mining acquisitions and financings
Offer closes Friday, January 23, 2026
Ora Banda Mining (OBM.ASX ESGFF) reported high-grade drill intersections from follow-up drilling at the Golden Pole Lode within its Waihi Project, extending the mineralised envelope beneath and around historic workings. The company plans further drilling at Golden Pole after follow-up drilling on Waihi’s Golden Pole Lode returned thick, high-grade intersections including 7.0 metres @ 27.4 grams per tonne gold (incl. 2.0 metres @ 87.5 grams per tonne gold), 2.2 metres @ 56.3 grams per tonne gold (incl. 1.8 metres @ 67.7 grams per tonne gold) and 2.2 metres @ 36.9 grams per tonne gold (including 1.9 metres @ 41.9 grams per tonne gold). Ora Banda has designed a further 20 holes for immediate infill and extensional drilling focused on the Golden Pole Lode, following expansion of the broader Waihi drilling program from 45 to 97 holes. Across the wider Waihi Project program, additional highlights included 2.0 metres @ 24.3 grams per tonne gold (incl. 1.0 metre @ 47.2 grams per tonne gold) at Waihi East and 3.9 metres @ 6.8 grams per tonne gold (including 1.5 metres @ 15.0 grams per tonne gold) at Homeward Bound; the first intercept of a potential new lode west of Golden Pole was reported at 1.1 metre @ 3.4 grams per tonne gold. A mineral resource estimate update is scheduled early in the June 2026 quarter and is expected to include the Golden Pole Lode for the first time. The Waihi deposit is about 3 kilometres west of Ora Banda’s processing plant and is being assessed for underground mining potential.
Europa Oil & Gas (EOG.L EGN.F) announced that the North Sea Transition Authority has granted a two-year extension to Phase 1 of the company’s PEDL343 licence, which contains the 137 billion cubic feet Cloughton gas discovery. Following the extension, Phase 1 will now expire on 21 March 2028, with Phase 2 expiring on 21 July 2030. The Phase 1 work programme includes acquiring 17 square kilometres of 3D seismic data and drilling an appraisal well to 6,500 feet. Europa said the extension provides time to drill the appraisal well. The Cloughton onshore field is close to the National Transmission System, which could support quicker tie-in if the appraisal is successful.
IperionX (IPX IPX.ASX) announced that the US Department of War, via its Industrial Base Analysis and Sustainment programme, has obligated the final $4.6 million tranche under IperionX’s previously awarded $47.1 million funding package. The company said the funds will be used to scale up titanium production and advanced manufacturing at its Titanium Manufacturing Campus in Virginia to enable output of up to 1,400 tonnes per annum, with planning, design and long lead-time activities under way. The US Government has also transferred about 290 tonnes of high-quality Ti64 titanium alloy scrap to IperionX at no cost, described as roughly 1.5 years of feedstock at the company’s current full operating capacity of 200 tonnes per annum. IperionX stated that all Department of War funding obligations have now been received, following earlier tranches totalling $42.5 million.
The Private Letter had a great year in 2025 and there’s even more to look forward to in 2026. This letter covers energy companies with potentially transformational upcoming events - which don’t even have to happen to make money.
Recent winners include Sintana Energy C$0.225 - C$1.54 (+584%), Reconnaissance Energy Africa C$0.42 - C$1.35 (+221%), Eco (Atlantic) Oil & Gas C$0.125 - C$0.62 (+396%), Borders & Southern Petroleum 2.14p - 13p (+507%), 80 Mile 0.215p - 0.92p (+328%), GEO Exploration 0.1p - 0.52p (+420%), Seascape Energy Asia 27p - 90p (+233%), Aminex 0.82p - 2.45p (+198%), Europa Oil & Gas 0.45p - 2.4p (+433%), Corcel 0.14p - 0.47p (+236%), 3D Energi A$0.082 - A$0.21 (+156%), Thor Energy A$0.008 - A$0.027 (+237%), and more.