Monument Mining Ltd. V.MMY

Simplified and Corrected NPV of Sulphide Project

[nozzpack]

1....Simplified, as the introduction of additional gold resources frrom Peranghi biasses the output
2...the last output column contained errors.

The model assumes that all economic sulphide and oxide gold reserves are exhausted at the end of the mine life.

ie we are left with a fully paid of Biox plant plus the accrued free tax flow aka NPV08

The feasability study can be seen in the corporate presentation on the website at this link ( Slide 16 )..all values in $USD

.https://www.monumentmining.com/site/assets/files/4187/mmy_corporate_presentation_-_selinsing_gold_mine_october_2020.pdf

Remember, this is just to mine and process the sullphide ore.

It assumes that once all sulphides are mined out , there are no more gold resources to mine at Selinsing ie we are left with a BIOX -Oxide plant and all of the associated equipment plus the NPV08 cash

I will choose the Reserves plus Inferred pits outcome, as that option leaves us with the highest NAV of $47 m $ US.

POG of $1300 and Options to POG of $1900 in $200 units

AISC = $861 /ounce

Breakeven is POG of $1100 US

2PI = Reserve pits plus Inferred pits

Total production =342,000 ounces

Mine life is 7 years
Current Cash is $15 m cad
 
all values in $USD.. Cash is current cash

                                          
Production (oz)           342                  342            342                      342
Cash cost                $861              $861         $861                 $861 
POG                       $1300            $1500        $1700               $1900
Revenue                 $444 m          $513 m     $581m               $650 m
Cash flow               $151 m           $219 m     $287 m              $356 m
Capex cost             $61   m           $61  m      $61 m               $61 m
net cash flow          $83  m            $158 m     $226 m             $295 m
  Dis                         8 %                 8%              8%                    8%
                     
NPV08  USD              $47 m           $91  m      $129 m              $168 m 
NPV08 C$                $60 m         $ 118 m      $167m               $219 m

Including Cash          $75 m        $133 m      $182  m             $234 m


Any new economic oxide and Sulphide gold discovered since 2018 at Selinsing will be extra to the NAV08 shown above, as are of course Mengapher and Murchison.

Conversion to Biox is profitable at all of the above POG price options

At POG = $1900 we will have a Sulphide Projext  NAV above $ 0.60 per share at the end of 7 years mine life.

Other than $1300 POG whose estimation error  varience probably include $1100 , any POG  above $1500 would be a GO.

So, why the delay in financing ?

[romara]

Not to be repetative.....  but they burnt people, and burnt the bridges behind them.... sure they can get a loan.... but at what punitive interest rate, and they don't want a Private Placing to secure funds, because that would, make them give up control of the company ....  Richard

[oilgashappy]

I remember the PP, The share price had shot up to 60cent or so, the PP was at 48cents. The kicker was the finder's fee of 10%!!!

[nozzpack]

  think that might have been around the time intellectually challenged Baldock  Had violated a legal agreement for compensation  with Tulum Corporation (“Tulum”) Company’s cancellation of the proposed private placements to Tulum which the Company had originally announced in 2011 and 2012. Absolutely brilliant solution by Baldock...give Tulum 12 million shares at $0.50 per