Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Marathon Gold Corp T.MOZ

Marathon Gold Corporation is a Canada-based gold exploration and development company. The Company’s primary business focus is the exploration and development of its flagship asset, the wholly owned Valentine Gold Project, located in Newfoundland and Labrador, Canada. The project comprises a series of five mineralized deposits along a 32- kilometer system. Its prospects are located along the Valentine Lake Shear Zone and include Frank Zone, Rainbow Zone, Triangle Zone, Victoria Bridge, Narrows, Victory Southwest, Victory Northeast, and the Berry Zone. In addition to the Valentine Gold Project in the Central Region of Newfoundland and Labrador, the Company holds 100% interests in the Bonanza Mine, a former mine located in Baker County in northeastern Oregon, the Gold Reef property, an exploration property consisting of approximately 12 hectares of claims located near Stewart, British Columbia; and a 2% net smelter returns royalty on precious metal sales by the Golden Chest mine in Idaho.


TSX:MOZ - Post by User

Post by Ridgebackon Aug 26, 2022 8:16am
212 Views
Post# 34921891

Sprott Update

Sprott UpdateFirst, I agree with Curse and his take on the situation. Unless there is a buyout over the next six months this is dead money and all those new assays only add fruit to attract interest from potential suitors. As eluded to below this may happen? So unless Au goes into the stratosphere this is wait and see who's interested?
---------------------------------------------------------------------------------------------------------------
--

Today’s Federal EA approval is the final major milestone required to advance Valentine’s construction as the provincial EA was received in May, requiring only local permits going forward. Whilst the provincial EA was more critical as this enabled early works, the Federal EA removes a key overhang and positions Valentine among the select few development-ready assets in North America with visibility on >150koz pa production—attractive to M&A buyers.


Still key is the upcoming cost guidance (we model +15% on published DFS) and updated DFS to follow in 4Q22, which in a new development we should see the Berry pit (1.1Moz @~2g/t in M&I) incorporated into the mine plan, a positive and unexpected development for us. Whilst Berry requires additional permits, by adding it into a DFS investor confidence on the DCF should improve, and thus the underlying value.

For now, we maintain our BUY rating and C$3.40/sh PT based on 0.8xNAV5%-1850.

With the stock at just 0.4xNAV, the interplay between funding, value and dilution is key; our PT is based on 328m fully-funded fully diluted assuming funding at 0.4xNAV.

With debt agreed, finessing the timings of equipment lease facilities, incorporating inflation and mine funding is key, as of course are capital market conditions. With the stock already having recovered from 120 lows, up >40% in the last month, we are hopeful that momentum resumes vs peers for whom ‘close’ to permitting could still see years of delays ahead.

Federal / Provincial EA complete – Valentine Gold Mine permitted to advance development Marathon announced that the Valentine Gold Project has now been fully released from environmental assessment in both the province of Newfoundland and Labrador and federally, allowing development to proceed based on applicable permitting to such as tree clearing, quarrying, earthworks, accommodation camp installation, road upgrades and culvert installations.

Why we like Marathon 1. Low cost vanilla gold pit in Tier 1 jurisdiction is without peer in >150koz group

2. First satellite Berry has the potential to exceed our modelled 620koz in inventory

3. Potential for further satellites in Berry – Marathon ‘gap’ and NE of Marathon at Narrows

4. Builder-mentality of management, multiple recent staff bulk build team

5. Fully-diluted NAV in production sits at ~C$5.00/sh Catalysts
• 2H22: Updated cost guidance and DFS
• 2H22: Project financing • 2022: Drill results from Victory, RC grade control program, and Scott Zone
• 2H22 / 1Q24: Construction starts / first pour
<< Previous
Bullboard Posts
Next >>