Monument Mining Ltd. V.MMY

Comparison of Phase 1 of CUE and Probable Phase 1 ODY

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Musgave minerals FS for phase 1 of its 927,000 ounce Cue deposit for which Ramelius recently acquired for $201 million ( $215 per ounce of M &I resource ).

Phase 1 envisaged a 5 year mine producing 337,000 ounces which would high grade some of the indicated resources.
Capex including a new 500,000 tpa mill is estimated to be $121 m.

NPV8 was a monstrous $215 m for such a 5 year LOM but rich cash flows would fund future development after converting Inferred to mineable .

ODY recently announced 376,000 ounces of M&I Resource averaging 2,2 grams per ton , with Approx 294,000 ounces at 3,4 grams per ton.

Their Phase 1 will likely be similar to that proposed by Musgrave ....high grading for rich cash flows to fund future development as well as expanding the Burnakura mill to 500,000 tpa resulting in an average of about 60,000 ounces per year at a AISC similar to Musgrave ( $1325 per ounce= $950 US per ounce ).

While this is proxy illustrative , it is not conjecture .
ODY has committed to early mining within the next 12 month .

Incidentally, with about 700,000 ounces of gold in formal JORC/ 43-101 , Burnakura and Tuckie are valued at about $155 million , based on Ramelius takeover price per ounce..

 

ey Highlights

 

• Confirms a financially attractive standalone project with an initial 5-year LOM demonstrating low cost, high margin gold production.
• LOM undiscounted, pre-tax, free cash flow of $314M over ‘Stage 1’ 5-year term (A$2,600/oz sale price), increases to $427M at April 2023’s spot of ~A$2,950/oz.
• Payback period of 9 months from commencement of production, accounting for a standalone 500,000 tpa processing plant and three months pre-production activities totalling $121M in startup capital.
• Stage 1 PFS gold production of 337,000 oz (345,000 oz mined) with the initial 3 years averaging 80,000 oz/year. The total LOM production includes approximately 77% Indicated and 23% of Inferred Mineral Resource.
• The Project displays robust financial metrics: 
  • EBITDA of $528M, with a C1 cost of A$934/oz.
  • Average LOM AISC of A$1,315/oz, including sustaining capital of $93M over the LOM.
  • Pre-tax NPV₈ of $235M, with an IRR of 95% ($215M and 91% post-tax).
• Stage 1 PFS cost profiles are based on the current inflationary environment, with 86% of the total costs having a direct Q1CY23 quoted price from service provider or contractor.
• Musgrave will rapidly advance to Stage 2 PFS with the aim of extending mine life through ongoing infill drilling to convert Inferred material as well as continued exploration and drilling of mineralised prospects to underpin an updated Mineral Resource Estimate in late 2023.