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Maritime Resources Corp V.MAE

Alternate Symbol(s):  MRTMF

Maritime Resources Corp. is a Canada-based gold exploration and development company focused on advancing the Hammerdown Gold Project in the Baie Verte District of Newfoundland and Labrador. The Company holds a 100% interest directly and subject to option agreements entitling it to earn 100% ownership in the Green Bay Property which includes the former Hammerdown gold mine and the Orion gold project. It controls over 439 square kilometers (km2) of exploration land including the Green Bay, Whisker Valley, Gull Ridge and Point Rousse projects. The Company owns mineral processing assets in the Baie Verte mining district, which include the Pine Cove mill and the Nugget Pond gold circuit. It also owns the Lac Pelletier gold project in Rouyn Noranda, Quebec. Its land holding, across all its properties, covers an area of approximately 43,925 hectares, of which the Company holds a 100% mineral rights interest in 37,050 hectares with the remaining 2,175 hectares under option agreements (100%).


TSXV:MAE - Post by User

Post by nozzpackon Oct 21, 2023 8:26am
138 Views
Post# 35694340

Added Perspective and Fair Value

Added Perspective and Fair ValueSprott used Peer valuation of 0.75 times NPV4  which computes to $300 million CAD ( $400 m **0.75 ).
This translates into about $0.45 per share fully diluted shares

So lets look at the key financial metrics of the 2022 FS at $1750 US POG

After tax IRR was 48.1 % which is excellent 

Payback was 1.7 years

Annual Free Cash flow  was $41.4 m cad

AISC was $912 per ounce

So, now lets look at what it might  be with the point Rousse Mill , with Orion and Stoger Tight added and mine life doubled.

Removing $75 m of debt generated Capex for the Nugget Pond mill and the IRR will be above 55 %

With just $5 m US in debt, Payback will be less than 2 months

Lower Transportation costs , twice the LOM ,and litle debt to pay back and the AISC will drop to $850 per ounce or less.


Free cash flows will increase substantially depending on how aggressively  HD is mined


PLUS

The Nugget Pond Mill can be fully refurbished with strong cash flows from HD mining .

The new Communition circuit will increase processing speeds and the mill will be able to run in parallel with the 1400 tpd Gold/copper circuit of the Rambler mill which will create opportunties for toll milling of copper /gold from the Ming copper mine or elsewhere ... 

Or, the switcheroo .

Once the Nugget cove mill is refurbished with HD cash flows , the remainder of the HD mine will be milled at the Nugget Pond Mill and the Pine Cove Mill used for toll milling of high grade open pit ore from NFG's Queenway deposits .

IMO, this latter option is most likely , especially as NFG has specified the Pine Cove mill .

MAE has very strong management , consistent with the high standards on Goodman and Dundee , as is obvious from the remarkable transformation of Maritime into an emerging Powerhouse mining/processing hub for NL.








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