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Morien Resources Corp V.MOX

Alternate Symbol(s):  APMCF

Morien Resources Corp. is a Canada-based mining development company focused on the identification and purchase of mineral projects. The Company holds two royalty interests in coal and aggregates on tidewater-accessed projects in Nova Scotia, Canada. The Company's project developments include Donkin Coal Mine and Black Point Aggregate Project. The Donkin Coal Mine is located in Eastern Canada, Cape Breton, Nova Scotia. The Company owns a gross production royalty on coal sales from the Donkin Mine in Cape Breton, Nova Scotia, owned by Kameron Collieries ULC, a subsidiary of The Cline Group LLC. The Black Point Aggregate Project is a granite deposit with a mine life of around 75-years located along the southern shore of Chedabucto Bay in Guysborough County, Nova Scotia, with suitable characteristics for the development of a crushed stone marine export operation for supplying markets in the eastern United States and Caribbean region. Its subsidiary is Advanced Primary Minerals USA Corp.


TSXV:MOX - Post by User

Comment by minefolloweron Dec 13, 2019 9:35am
252 Views
Post# 30451478

RE:RE:Any news?

RE:RE:Any news?I've watched this company closely since it was spun out of Erdene in the early 2010s. I owned the same number of shares of each for a long time. It's great how MOX has been paying dividends and buying back shares consistently over the last few years. They have around 53 million shares outstanding. The prospects for Morien look good. Cline's passing was a major blow, but the family can't walk away. They have too much invested and the prospects are just too good. The best option is to increase production. If a long wall decision is made, MOX should be worth $0.75-1.00 12-18 months from that decision. It has to be. With 3-5 million in annual sales, and 1-3 million of that at a 4% royalty, it will be throwing off a ton of cash. Here's a simple scenario. Assuming 4 mtpa, with an average selling price of just CAD$75/t, the royalty to MOX would be $9 million per year. Assuming overhead of $1.5 million and taxes at 34%, that would give free cashflow of ~$5 million. Assuming an 80% payout ratio, that's over $0.07 per share dividend. With that size dividend, the share price should be around $1.00 (a 7% yield). Lots of upside here and a small dividend while you wait. Great to see insiders putting their own money on the line and increasing ownership over the last few years.
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