OTCQX:MEAUF - Post by User
Post by
railwazeon Jan 01, 2015 6:42pm
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Post# 23278367
ME Analysis from March 15, 2014
ME Analysis from March 15, 2014https://www.goldsilverdata.com/company/317-Moneta-Porcupine-Mines-Inc.html Summary
(from last analysis - 03/15/2014) Moneta Porcupine has an excellent project in Ontario, Canada. The Golden Hwy property is a 4.3 million oz resource (1 gpt with a 90% recovery rate). They recently released a PEA for 25,000 tpd at 288,000 oz annual production. The capex was high at $600 million, but is economic at $1350 gold, with a 24% IRR. Cash costs are favorable for Canada at under $800 per oz. The only red flag - other than the high capex - is the timeline until production. My guess is 2018, but it could slip to 2019 with financing issues.
This stock looks promising, although it is still a speculation stock until they get financing and build the mine. The FD market cap is only $27 million and future reserves are valued at $8, so it is a very cheap. They are past producers, so they have the management team to build and operate the mine. But I am concerned this is too big a project for them to build or finance. My expectation is for them to sell or option it. Once we get to $1500 gold this is going to look like a solid project to a mid-tier looking for growth. For this reason, I don’t think this stock is going to payoff very big.