GT Resources Inc V.GT

PDM compared to GENM

[Mookster3]

PDM’s Kaukua area and Generation Mining’s Marathon, are all disseminated, mafic/ultramafic, footwall deposits, with open pittable resources, in mining-friendly jurisdictions. Both projects have good access to infrastructure and green power supply. Both projects have similar ore values, with PDM having modestly less tonnage, but less vulnerability to Pd pricing, because of the Ni credits. GENM is farther along, with environmental hearings just finished and an expectation that permits and remaining financing will be in place to allow a construction decision later this year. GENM recently closed their $240 mm streaming deal with Wheaton, which buys Wheaton the gold production from Marathon, plus 22% of the platinum. Kaukua gold and platinum grades are identical to Marathon, so a similar streaming deal should be doable. Both projects have plenty of blue-sky potential to expand. Although slightly lower in tonnage at the moment, overall, the PDM deposits have to be considered superior, or at least equivalent to the Marathon deposit because of the lower strip ratios (0.6-1.5 vs 3 for Marathon) and the much lower vulnerability to palladium pricing.
 
 Ore Value Calculation

	Price (US$)	GEN    Marathon  (111 mm t)		PDM      Kaukua    (69 mm t)		PDM    Haukiaho   (19 mm t)
	oz/lb	%/g	$/t	%/g	$/t	%/g	$/t
Pd	$1700	0.69g	$42	0.58g	$35	0.27	16
Pt	1100	0.21g	8	0.21g	8	0.11	4
Au	1800	0.07g	5	0.07g	5	0.10	6
Cu	4.25	0.22	21	0.13	12	0.18	17
Ni	8.5	Nil	0	0.12	22	0.14	26
Co	25/lb	?	?	70g	4	0.005	3
Total ore value $/t			$76/t		$86/t		$72/t
Total deposit value          ($Billion)			$8.4		$5.9		$1.4
Market Cap $mm (4/22)			$167		$51
Cash $mm			$301		$15
Enterprise value $mm			$137		$36

1) includes $20mm down payment from Wheaton
 
Vulnerability to Palladium Price

	GEN      (Marathon)      111 mm t (% of total value)	PDM        (Kaukua)        69 mm t   (% of total value)	PDM   (Haukiaho)     19 mm t (% of total value)
Pd	55%	41%	25%
Pt	11	9	6
Au	7	6	9
Cu	28	14	22
Ni	0	26	35
Co	?	5	4

[IgnacioCashmere]

I own both. One thing about the Marathon resource, the Feasibility Study only gives 1,900,000 ounces palladium while the M+I respurce estimate contains 4,200,000 oz. If they make it to production, there is a high probability of a longer mine life than the FS of 13.5 years. There is also double the copper & platinum. Their FS really took the wind out of the sails on volume. Everything hinges on

[Goodtoreadthis1]

The detailed statistics in your post tell all of us that PDM IS WORTH at least as much as GENM IF NOT MORE. GENM trades at 89 cents C while PDM is 20 cents C. It is only a matter of time efore PDM catches up to GENM .