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Generation Mining Ltd T.GENM

Alternate Symbol(s):  GENMF

Generation Mining Limited is a Canada-based exploration and development company. The Company's focus is on the development of the Marathon Project, a large undeveloped palladium-copper deposit in Northwestern Ontario. The Marathon Project is 100% owned by Generation PGM Inc. (Generation PGM), a wholly owned subsidiary of the Company. The Marathon Project is located along the Trans-Canada Highway in Northwestern Ontario and covers a land package of approximately 22,000 hectares. The Marathon Project is estimated to produce about 2,122,000 ounces of palladium, 517 million pounds (lbs) of copper, 485,000 ounces of platinum, 158,000 ounces of gold, and 3,156,000 ounces of silver.


TSX:GENM - Post by User

Comment by Sacks45on Jan 05, 2021 1:00am
120 Views
Post# 32221789

RE:RE:share price is not too high

RE:RE:share price is not too highAt the time we got 3.65 a share plus one share of marathon gold currently trading near 3.00. This is part of an article I found. Keep in mind most metals are up 3 to 4 folds since this article. In January of 2010, MAR released an optimized definitive feasibility study for Marathon. The study set out the parameters for a mine and process plant costing C$351 million, rated at 22,000 tonnes per day and a projected operational mine life of 11.5 years. This study excluded resources outside the main pit shell which would extend mine life and the exploration potential at Geordie Lake where the resource is still open. Projected annualized production is 234,000 ounces of platinum group metals with gold, 37 million pounds / 16,700 tonnes of copper and 182,000 ounces of silver. Cash operating costs were estimated at C$13.39 per tonne, but when copper credits were applied, cash costs dropped to minus US$14.40 per tonne. Stillwater is offering C$1.775 in cash per share plus 0.112 common shares of its stock for each Marathon PGM share. Stillwater has also agreed to purchase C$3 million of Marathon PGM shares in a private placement with the price to be determined based on the five-day volume weighted average trading price, less a 15% discount. Marathon PGM will also distribute shares of its subsidiary, Marathon Gold to shareholders before the exchange with Stillwater. Total consideration payable by Stillwater for the transaction is valued at approximately US$118 million or Cd$3.55 per Marathon PGM share, which does not take into account the value of the Marathon Gold shares. From Stillwater`s point of view, the transaction gives it access to additional near term production. The company expects its total platinum and palladium production to rise by 40% within three years, and sees the acquisition as immediately accretive on a net asset value (NAV) per share basis and once in production, the Marathon project will boost the group`s cashflow. The Marathon PGM/Copper Project reserves are situated on one of Canada's largest PGM-Cu resources, which Stillwater believes hold significant potential for further growth in reserves and future production, Stillwater added.
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