OTCQX:MEAUF - Post by User
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RX4H1N1on Apr 14, 2013 12:38am
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Post# 21251691
ME on goldsilver.com - March 14, 2013
ME on goldsilver.com - March 14, 2013 https://www.goldsilverdata.com/company/317-Moneta-Porcupine-Mines-Inc.html
Summary (from last analysis - 03/14/2013)
Moneta Porcupine has an excellent project in Ontario, Canada. The Golden Hwy property is a 4.3 million oz resource (1 gpt with a 90% recovery rate). They recently released a PEA for 25,000 tpd at 288,000 oz annual production. The capex was high at $600 million, but at $1700 gold the payback period is only 2.5 years and the IRR is 40%. Cash costs are favorable for Canada at under $800 per oz. The only red flag - other than the high capex - is the timeline until production. My guess is 2017, but it could slip to 2018.
This stock looks very promising, although it is still a speculation stock until they get financing and build the mine. The fully diluted market cap is only $37 million and future reserves are valued at $12, so it is a very cheap. They are past producers, so they have the management team to build and operate the mine. If they can become a 250,000 oz producer, this stock could be a 25 bagger. While that might not happen, it has explosive upside potential. I also like their exploration potential with their large land holdings (50,000 acres) in Ontario. If they can build their Golden Hwy mine that will provide cash flow to explore their other nearby properties (7 zone targets in their pipeline). As far as speculation stocks go, this appears to be a good one. Hopefully they can get financing for Golden Hwy and not get taken over by an aggressive mid tier producer.