Mining shares are known for volatility, especially when the company in question does not yet produce metal. Collective mining (TSX: CNL) is one of that early phase explorers. Focused on Colombia, production has not started and has no income. But despite that, this mining stock has risen by more than 274% in the past year and it can still have room to double.
What happened
That may sound like hype. After all, we are talking about a mine share that has posted a loss of $ 16.9 million in Q1 2025. But a further look shows why investors mainly Agnico Eagle MinesCasting money in collective. Even after a withdrawal of its 52 weeks high from $ 16.45, it contains around $ 13.68. And that is after only $ 3.51. So, is this just a hot series? Or is collective mining on something much bigger?
Let’s break it down. First, this is not a Penny stock with little support. Collective has attracted the attention of Agnico Eagle, a heavyweight in the gold extraction room. In March 2025, Agnico bought 4.7 million shares on $ 11 each and exercised 2.25 million warrants at $ 5.01, which resulted in its total property at almost 15%. That is not a token gesture. That is strategic importance, and it is not the first time that Agnico has supported the company.
With that investment, a large injection came in cash. By the end of Q1 2025, Collective had $ 78 million in cash and a working capital position of $ 75.4 million. For a mining stock at the stage, that is a healthy balance, giving it room to aggressively performing exploration without worrying about dilution financing.
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Disaster up it has. The mining stock has two exploration strap projects in Colombia: the Guayabales project and the San Antonio Project. The majority of expenditure so far has gone to Guayabales, in the Middle Cauca Belt, an area known for large -scale gold and copper discoveries. Drilling in Q1 2025 was aimed at various zones with high potential, including Apollo, Ramp, Plutus, Trap and Box.
In total, Collective only spent $ 4.9 million on exploration in the first quarter of 2025, with more than $ 4 million assigned to Guayabales. That brings its cumulative expenses for only the first Guayabales option to $ 31.9 million since the beginning. It is clear that this is not a mining stock that is in early exploration that dabbles in early exploration; It moves quickly to define an important system.
In the meantime, with the San Antonio project, which had become quiet for a while, the drilling resumed in Q1 2025, with $ 700,000. The company believes that this project has promise for porphyry and mineralization hosted by Breccia, and it has already made a discovery with the pound target.
Consideration
Despite the strong progress, the mining stock does not generate income. It still places consistent losses, at $ 0.22 per share in Q1 2025. But these losses are expected at this stage. The greater question is whether these exploratory collars will convert into a meaningful source and final production.
That is where Agnico’s involvement becomes more important. Majors do not invest in every junior, but only in those who believed they have the goods. With 10 drilling platforms that now work and $ 63 million in recent financing, the mining stock drills that there is something big within reach. The market also seems to believe it. In fact, collective mining now has a market capitalization of $ 1.2 billion, an increase of only $ 217 million a year ago.
That kind of movement can be difficult to trust. It has been so much up, can it really double again? It depends on what the exercises think afterwards. If the company can outline a tool that is large enough to attract a takeover bid or transition to development, the current appreciation can still be cheap. It is not unusual that a promising junior is acquired in a premium as soon as a large discovery has been discovered.
Bottom Line
Collective mining is no longer priced like a flyer. It is priced as a mining stock with serious support, money to spend and deliver results. If it can convert its discovery into a mining plan, or even a major estimate of the resource, it can easily become a $ 2 billion company. In that case, the mine stock would not only reclaim his recent dip. It could double here.
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