Monument Mining Ltd V.MMY

How to Reach a Share Price of $1

[nozzpack]

Lets summarize what we have here now and what is knowingly coming over the next year.

 I assume POG of $1750 US which is $2200 CAD

Selinsing Production

Average Cash cost of $520 US over LOM = $650 CAD

I Assume  AISC = $650 + $ 300 =  $950 per ounce

25,000 ounces X $ 2200 minus $ 950  = $31 m cash flow

Murchison Production

I assume Kentors number which is 24,000 ounces at  $1200  cash costs+ $300 = $1500

24,000 ounces X $2200 minus  $1500 = $17  million m CAD

Colombian Concentrate Agreement

I assume 1000 ounces per month at the conventional price as previously reported ( 65% of gold content =$1430 per ounce plus transportation and milling = $1550 per ounce) 

12000 ounces X $2200 minus $1550 = $8 million CAD

Floatation Plant

I assume it will be processing artisanal production delivered to the Selinsing plant.

Artisanals tend to mine the higher grades as well as the most accessable.

I use 5 gms per ton but that is an arbitrary assumption

I assume 50 % of floatation capacity will be used for Artisanal ore which is approx 500,000 tons. This amounts to about 75,000 contained ounces , with a 10 % processing loss = 67,000 ounces.

I assume that these miners get 65 % of the contained ore as a POG  which is about  $1600 per ounce cost including processing loss.

So, we have 67,000 ounces X $2200 minus $1600  = $40 million CAD.

As this is to be sold in the form of concentrate  whose exact price I cannot determine, I assume that 50 % or $20 million will be net to Monument.

That still leaves about 400,000 tons of  spare floatation  capacity.

SUMMARY

Its too early to detail the output of the Floatation plant, so I will not consider that here.

The financial contribution of the Floatation plant to these other sources of annual cash flows have not been considered in the above calculations.

These should certainly cover any over estimations that I may have made in the other three sources of annual cash flows.

Combined, we have total annual cash flows = $31 m + $ 17m + $8 m  which is $56 million.


This results in aggregate annual cash flows of about $56 million.

Currently, Small Cap Junior Gold Producers trade at 8 times cash flows which computes to about $450 CAD  ( $1.30 per share ) as a fair  peer based market cap for Monument, assuming the performance metrics described.

It also assumes adequate investor promotion.

So, I do believe that we have current production resources to reach the $1 level over the next year or so




https://www.kitco.com/commentaries/2020-12-15/-Metals-Mining-analysts-ratings-estimates-senior.html