RBC UpdateAugust 24, 2022
Marathon Gold Corp
Federal EA Approval allows for advancement of Valentine Project
TSX: MOZ | CAD 1.74 | Outperform | Speculative Risk | Price Target CAD 3.00
Sentiment: Positive
We expect a positive reaction from Marathon shares following the approval and release of the Valentine Gold project from the federal EA process. The positive decision allows for the commencement of site specific permitting and early works to begin at the site, and we look to financing and full mobilization over the coming months ahead.
As part of the decision, the company must satisfy a number of conditions related to fish habitat, air/water quality, and Indigenous resources, with the Impact Assessment Agency of Canada noting that they had engaged with two Indigenous Groups in conducting their assessment.
Additionally, the company is expected to advance an FS in Q4/22, which would incorporate updated capex and operating costs along with inclusion of the Berry Zone as a third mining front. We currently model C$400M in construction capex with first gold in H2/24.