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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 jakebrickon Feb 25, 2021 12:12pm
111 Views
Post# 32658569

RE:RE:RE:RE:Very Interesting!!!!

RE:RE:RE:RE:Very Interesting!!!!That basic math seems correct and conservative, which is a good thing. To equate 500M future profit to a market cap is not easy, but if you choose a high discount rate, 10%, and assumue there will be 10 years of profit (for GENM portion) of $50M, then the NPV is $307M. Since a lot of things still need to go right before profits are being made, I would say that should be discounted about 50%, which is $153M. Add the $91M cash if SBSW buys in, and we're at rough valuation of $244M, almost double today's market cap.

In this rough math, I give a greater than 50% chance that things actually turn out better. In 5 years this could easily FCF $2/year (~$1/year for GENM).


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