Post by
Ridgeback on Aug 11, 2023 8:24am
TD UPDATE
Marathon Gold Corp. (MOZ-T) C$.77 Corporate Update — Q2/23 Financials Arun Lamba, CFA Kulvir Gill, CFA (Associate)
Event Yesterday morning, Marathon released its Q2/23 financial results.
Impact: NEUTRAL As at June 30, Marathon reported a cash balance (unrestricted) of ~$130mm. In July, the company closed a $6.9mm flow-through financing. In the quarter, the company spent $33mm on capex ($32mm construction related).
On June 8, Marathon announced the sale of an additional 1.5% NSR to FrancoNevada Corporation (FNV-N) for US$45mm (now classified as deferred revenue on the balance sheet).
The company also has ~$248mm of restricted cash ($243.5mm held within the Debt Proceeds Account with releases subject to certain covenants).
The company has fully drawn its US$225mm Credit Facility (transferred to the DPA). At June 30, there was US$175mm in advances remaining in the DPA.
This implies total liquidity of ~$380mm. For reference, we currently model the company completing a $50mm equity financing in 2024.
As of June 30, the project's cost to completion stands at ~$391mm (+$40.5mm increase from the original December 2022 Feasibility Study cost to complete estimate of $463mm).
Project construction costs incurred from November 1, 2022 to the end of June 2023 were $113 million. This excludes sunk costs of $71mm incurred prior to October 2022.
As a reminder, last week, Marathon provided an update on construction progress (see Flash Note) at its Valentine Gold Project (100%) located in central Newfoundland. First gold is anticipated by the company in Q1/25.
As of June 30, the overall project was 35% complete, engineering was 87% complete, procurement was 60% complete, and construction was 15% complete.
As at June 30, overall permitting progress stood at 89% complete (Berry requires a permit amendment; completion anticipated in 2024
---------------------------------------------------------------------------------------------------------------------------------
Not much to add here but watch the paint dry and wait for assay results from the Frank Zone which most likely will be coming at a smails pace.
Comment by
stockwatcher7 on Aug 11, 2023 11:11am
This post has been removed in accordance with Community Policy