Maritime Resources Corp V.MAE

POG makes Huge Difference to Updated HD Feasibility

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The essence of the November 2022 FS is given below.

Current POG of $2350+ is $500 million US per ounce higher than the reference POG in 2022.

This is a huge difference of about $675 cad per ounce increase.

In the absence of an increase in the AISC of $912 US per ounce(  $1150 cad ) that $675 CAD increase in POG would add about $33 million cad in cash to our balance sheet per year on 50,000 ounces in annual production.

But, will our AISC increase ?
Energy prices are about the same but there is generic inflation of about 7,5% per year which would add about $200 million CAD to operating costs .

But, we save transportation costs by using the Pine cove mill and eliminate over $40 million in Capex by not having to upgrade Nuggett Pond mill.

And production will be for 9-10 years at about 75,000 ounces per year which means signifucant savings in  unit operating costs.

Let's say about $50 million CAD in operating savings which leaves us with about $150 million CAD increase in AISC .

This will bring our AISC to about $1300 CAD per ounce.

At $2350 US = $3200 CAD per ounce, we will be free all in cash flowing $1900 CAD per ounce which @75,000 ounces per year ,means about $135 million CAD in free cash flows .
Thats about $0,20 per share in free cash flows on 600 million FD shares .

To be really conservative, divide by 2 and its $0.10 per share in free cash flows .

So, while presumptively illustrative (mainly  assumption of  POG of $2350 ) , we are trading at just 0.6 times cash flows when the peer multiple is about 7.5 times

FWIW

Xxxxxxx

$ 128M NPV,

58% IRR @ US$1850/oz

$75M initial capital,

AISC US$912/oz 50,000 oz/y gold production
 

272k oz @ 4.46 gpt Au open pit reserves1