Stockpiled Oxide Soils info answer Hello yes it's true there were 1.2 million on stockpile liege these must however still be sent through the plant and then someone buys the iron ore.
11:58 | 20.08.2014
Is Monument Mining facing a revaluation in the medium term?
Times are still difficult for the gold industry worldwide. The share of the Canadian gold producer Monument Mining (WKN A0MSJR / TSX-V MMY), which is active in Malaysia, was also affected by this. But now some developments are imminent, which in our opinion offer great opportunities for a revaluation of the company.
Partly due to homemade problems - there has been a dispute between major shareholders in the company and management, among other things - the Monument share has "gone under the wheels" and recently even slipped below the CAD 0.20 mark.
At the beginning of September, Monument CEO Robert Baldock will now come to Frankfurt to answer investors' questions. And if one can believe the announcement of the event, he has some plans in his luggage, the implementation of which could completely reposition the company.
Firstly, Monument plans to start iron ore production in September at its Mengapur polymetallic project - like the Selinsing gold mine in Malaysia - at a rate of 3,000 tonnes per day. In January 2015, the production rate is to be doubled to 6,000 tons per day.
On the other hand, a second production facility, a refurbished mill of the previous owner with a capacity of 1,000 tonnes per day, is also to go into operation on this project and produce copper. The repair of the mill is to be completed soon, as can be seen from the picture attached here.
And finally, although probably not before the end of 2015 or the beginning of 2016, gold production at the Murchison Mine in Australia, which the company was able to take over at a favourable price at the beginning of the year, is still to commence.
This means that in the medium term Monument Mining could have cash flow streams of three different metals: Gold (Selinsing, Murchison); iron ore (Mengapore); and copper (Mengapore). Of course, due to the not yet completed and published NI 43-101 reports or pre-feasibility studies, it is not possible to say seriously at this point in time, what the production volume would be, but compared to the status quo, Monument would certainly be in a completely different league...
In addition to the start of iron ore production next month and before the later start of copper production on Mengapore and gold production in Australia, there is more news to be expected in the shorter term that could boost Monument's price:
- For example, a decision is pending on how the sulphide ore present on Selinsing and the surrounding areas can be mined most profitably. Here, the so-called organic heap leaching is likely to be favoured. In the medium term, this would mean an increase in gold production on Selinsing, as the gold content would then be much higher than the currently processed overburden, which has been lying in stockpiles for years and is currently generating an operating profit due to the expanded capacity of two mills. The management expects lower production costs. However, the corresponding technical reports to support this are still missing.
- With regard to Mengapur, a resource estimate with a subsequent preliminary economic evaluation study (PEA) is still pending.
- Exploration results are expected at Murchison with a subsequent resource estimate and production decision
This means, in our opinion, that if Monument Mining does succeed in implementing these plans and, in the best case, resolving the inconsistencies mentioned above, it could be faced with an almost "imperative" revaluation and the company's share, which is undoubtedly down at the moment, could move into completely different regions.
Of course, this is a big "if" and the risks that it might not happen otherwise cannot be dismissed, but investors who enter the market at the current low level or increase their holdings could make a very substantial profit if they succeed.
In any case, when Mr. Baldock addresses the German Monument shareholders at the Jumeira Hotel in Frankfurt on September 2, we will be listening carefully to what progress the company has made, what plans the Monument CEO has for the near future and when and how exactly he intends to implement them.