Post by
kukaman on Jun 21, 2020 7:01am
Some thoughts on the Beaufor Mine potential and Monarch’s
market cap
According to the recent interview with Mr. Lacoste the base case is 25,000 ounces per year with a grade of around 5 g/t. He also said they are chasing veins 12-17 g/t. With higher grades costs are in a range of C$ 1,100 – C$ 1,300.
Let’s assume in our calculation the grade will be at 10 g/t with costs of C$ 1,300.The result is 50,000 ounces per year with a minimum C$ 1,000 pre-tax profit per ounce at the current price of gold. It is also a re-start and not much funds are needed to put it back in production.
Current market cap is still ridiculously low in my opinion.