Loncor Gold Inc T.LN

Excellent Proxy for Adumbi PEA

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As posted previously, Marathon Gold ( MOZ on TSX.. Market cap of $450 m ) Valentine lake gold deposit is an excellent valuation proxy for Adumbi.

Valentine lake  has 3.3 m ounces in its M & I and another 1.6 m ounces Inferred at an average graxe of 1.75 gms per ounce.

Marathon recently released its PEA for Valentine Lake whose essential details are..


NPV5  is $600 million  at $1500 POG  and NPV5 is at $868 m at $1750 POG.

Grades are 35 % higher at Adumbi.

Based on this PEA calculation..see link below..Adumbi PEA will have a NPV 5 of  at least $600 million at POG of $1500 US.

MOZ trades at 75 % of Valentine Lake NPV 5 at $1500.

Applying this to Adumbi,  Loncors  fair value market cap currently is about $450 million or about $3.50 per share in CAD


.https://marathon-gold.com/site/uploads/2021/03/3-29-2021-Marathon-Announces-Valentine-Feasibility-Study-vFinal.pdf

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In today's NR, they provided many of the essential financial metrics associated with the coming PEA. Total cash costs were not provided . Howver, as the open pit grades are very close to those of Kimbali, so should the total cash costs. In the most recent Quarter ( Q4 of 2020 ), Kimbali total cash costs were $616 per ounce. For computational convenience, I will use $700 US per ounce at POG