RE: Key Stock update
Quick notes from the Snowden report:
The Mengapur Project is located in Central Malaysia in the State of Pahang, approximately 130 kilometers from Monu- ment’s wholly owned Selinsing Gold Mine near Sri Java, 12 kilometers from a highway and 75 kilometers from the Ma- laysian port of Kuantan. It was first discovered by a drilling program carried out by the Geological Survey of Malaysia. Historical economic and resource estimates on the Mengapur Project were completed and published as a “Definitive Feasibility Study” in October 1990 by Normet Engineering Pty Ltd with James Askew Associates completing the histori- cal ore reserve and resource estimates, both of Perth, Western Australia.
The report is 116 pages in length and well detailed. From our perspective, it is notable that it estimates the average an- nual net cash flow generated by the project during the first five years of full operation at US$42.5 million. For the second five years, it is US$40.0 million whilst the average over the project life (estimated at 23 years) is US$33.1 million.
During the initial two years of construction and mine development, revenue would be realized from the leaching of high grade leachable oxide ore; an operating profit of US$3.9 million would be generated in the second year.
concluSion
Again, we are re-instating our BUY rating on Monument in its current range based purely on attractive valuations. We are monitoring it closely