National Bank 10:25 AM EST, 12/08/2022 (MT Newswires) -- National Bank of Canada said Thursday that it ascribed a negative bias to Marathon Gold Corp. (MOZ.TO)'s updated feasibility study for its Valentine gold project in Newfoundland and Labrador.
The bank said the posttax net present value, at a 5% discount, of $361 million was 40% lower than the 2021 feasibility study that valued the project at $600 million.
The decline was attributed to higher capital and operating expenses, as well as the first pour being delayed to the first quarter of 2025 from late 2024.
National Bank noted that updated mine plan showed an uptick in grades which provided a modest lift to annual production of 195,000 ounces per year over a 12-year mine life, although it came at the expense of the Marathon pit tonnage per ounce.
The bank maintained Marathon's outperform rating and $2.00 price target, reflecting the project's location in a tier 1 jurisdiction, compelling organic opportunity and M&A appeal.
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