PDM compared to GENMPDM’s Kaukua area and Generation Mining’s Marathon, are all disseminated, mafic/ultramafic, footwall deposits, with open pittable resources, in mining-friendly jurisdictions. Both projects have good access to infrastructure and green power supply. Both projects have similar ore values, with PDM having modestly less tonnage, but less vulnerability to Pd pricing, because of the Ni credits. GENM is farther along, with environmental hearings just finished and an expectation that permits and remaining financing will be in place to allow a construction decision later this year. GENM recently closed their $240 mm streaming deal with Wheaton, which buys Wheaton the gold production from Marathon, plus 22% of the platinum. Kaukua gold and platinum grades are identical to Marathon, so a similar streaming deal should be doable. Both projects have plenty of blue-sky potential to expand. Although slightly lower in tonnage at the moment, overall, the PDM deposits have to be considered superior, or at least equivalent to the Marathon deposit because of the lower strip ratios (0.6-1.5 vs 3 for Marathon) and the much lower vulnerability to palladium pricing.
Ore Value Calculation | | Price
(US$) | GEN
Marathon
(111 mm t) | PDM
Kaukua
(69 mm t) | PDM
Haukiaho
(19 mm t) |
| | oz/lb | %/g | $/t | %/g | $/t | %/g | $/t |
| Pd | $1700 | 0.69g | $42 | 0.58g | $35 | 0.27 | 16 |
| Pt | 1100 | 0.21g | 8 | 0.21g | 8 | 0.11 | 4 |
| Au | 1800 | 0.07g | 5 | 0.07g | 5 | 0.10 | 6 |
| Cu | 4.25 | 0.22 | 21 | 0.13 | 12 | 0.18 | 17 |
| Ni | 8.5 | Nil | 0 | 0.12 | 22 | 0.14 | 26 |
| Co | 25/lb | ? | ? | 70g | 4 | 0.005 | 3 |
| | | |
| Total ore value $/t | $76/t | | $86/t | | $72/t |
| | | |
Total deposit value
($Billion) | $8.4 | | $5.9 | | $1.4 |
| | | | | | |
| Market Cap $mm (4/22) | $167 | | $51 | | |
| Cash $mm | $301 | | $15 | | |
| Enterprise value $mm | $137 | | $36 | | |
1) includes $20mm down payment from Wheaton
Vulnerability to Palladium Price | | GEN
(Marathon)
111 mm t
(% of total value) | PDM
(Kaukua)
69 mm t
(% of total value) | PDM
(Haukiaho)
19 mm t
(% of total value) |
| Pd | 55% | 41% | 25% |
| Pt | 11 | 9 | 6 |
| Au | 7 | 6 | 9 |
| Cu | 28 | 14 | 22 |
| Ni | 0 | 26 | 35 |
| Co | ? | 5 | 4 |