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.