Post by
locomoco on Aug 01, 2020 11:03am
Why Monarch can be $5+ per share in few years
Summary of reasoning IMO, why Monarch can be $5+ per share in a few years. Personally, I am looking for Monarch to be around $8 when Wasamac starts producing given how crazy the gold bull market run can get over next few years. This is not advice to invest in Monarch. Do your own DD.
- Beaufor will restart around Q1 2021 with expanded resources after 43K metre drill program by CDPQ investing $5M for this project
- Estimated cash flow from Beaufor mine is $20M CAD per year
- Wasamac advances with cash flow from Beaufor and goes into production by 2023 and produces around 140K oz gold annually achieving cash flow of over $200M CAD per year.
- Resource increase in Croinor from 200K to 500K to 1M from further drilling and still more potential as 150 sq km Croinor property is so vast
- With steady cash flow from Beaufor and Wasamac, Croinor is put into production since it already has mining permits and maybe candidate for open pit mining
- After compiling vast data and performing analysis on Camflo, Monarch realizes the hidden potential there since it is so close to Malartic Mine
- McKenzie and Swanson advance to production stage as well or sold off to focus on Beaufor, Wasamac and Croinor
- POG is around $3000 per oz in a few years
- Monarch management has skin in game with employees owning shares and therefore laser focused on appreciating shareholder value and limiting on share dilution
Another likely scenario is a current major miner invested in Monarch, like Yamana or Alamos buys Monarch just before Wasamac goes into production for around $3 per share.
Either scenarios, with patience of a few years if you have a sizeable position with Monarch you will be greatly rewarded.
Comment by
Timster61 on Aug 01, 2020 3:42pm
Nice overview Locomoco - thanks for that. I currently own a lot of shares and have big expectations for MQR (maybe not $8, but I agree if the POG did move to 3000 that could happen). The other mines and the potential are very interesting and no question the sky is the limit on Croinor based upon the regions mining history. You are talking me into adding more! Have a great weekend