Reserve valuationMana / Boungou / Yactibo
Giidance midpoints:
Production, koz
185 / 65 / 0
AISC
1045 / 557.5 / 0
Reserves, moz
1.7 / 1.5 / 0
M&I Resources excl. reserves
2.7 / 0.4 / 0
Inferred Resources
0.8 / 0.05 / 0.6
Mana and Boungou are very nice assets, quite high grade open pits, at 3 and 4g, respectively. Based on the 2P reserves and 1300 gold, you have about 400m and 1.1b in future EBITDA at Mana and Boungou, respectively. A total of 1.5b is probably 1b after tax, based on the current mining code. If you discount this for 7-8 years of production, it's probably worth 600m. Add a little value for the resources, which are another 3-4moz, but at a lower grade and will produce later. And the exploration properties. You could argue there's a billion dollars of value here, assuming no discount for jurisdiction. You never know whether miners will spend the money well, or in shareholders' favour, but at least they pay a dividend. Market cap of 700m with zero net debt, it may be moderately undervalued. Certainly, not as rich as other gold producers. There is currently a discount for West Africa. All Africa, for that matter!