Maritime Resources Corp V.MAE

2022 FS Updated for POG

[nozzpack]

The 2022 FS used POG = $1750

I used $2250 US just to update the free annual cash flow  ( 2250- $1750  times 50,000 ounces per year = $25 million USD per year.

Everything else was assumed to be the same .

I have checked Total Cash costs for open pits in Canada  in 2024 and the estimate for 2022 FS is slightlly higher.

Recovery will be higher too and capex will be substantiavely reduced due to the $41 m needed to upgrade the Nugget Pond mill wont be needed.

However, none of the above has been changed except the Free Cash flow to the balance sheet.

So free annual cash flow increases to $66.5 million USD per year  which is $90 million per year in CAD.

Which is $1 per fd postconsolidated share 

Typically current gold stocks trade above 7.5 times free cash flows , so the valuation of MAE will be quite robust .

Notes....Mine life will expand to  at least 8 years in the new FS due to the addition of Stoger, Orion and the other 3 discovereis at HD.

This will substantively increase the NPV to over $400 million 

CONCLUSION

A realistic change only in the POG  will  triple  the NPV and Valuation  estimated in  the 2022 FS using $1750 TCC . 

	2022 FS  USD
	ITEM	UNITS	TOTAL
	Mine life	years	5
	Ore tonnes	kt	1,895
	Waste tonnes	Mt	38.5
	Strip ratio	waste:ore	20.3
	ROM ore production	tpd	1,200
	ROM gold grade	Au gpt	4.46
	Sorting plant waste rejection	%	40.0
	Sorting plant gold recovery	%	95.0
	Mill throughput	tpd	700
	Mill head grade after sorting	Au gpt	6.76
	Tonnes milled	Kt	1,189
	Mill gold recovery	%	95.5
	Gold produced	oz	247,346
	Avg. annual production	oz	50,000
	Mining cost	$/t moved	4.31
	Mineral processing	$/t milled	48.06
	Trucking from sorting plant to mill	$/t milled	25.50
	General & Administrative	$/t milled	12.04
	Cash costs1,4	US$/oz	897
	AISC per ounce gold1,4	US$/oz	912
	Total initial capital3	$M	75.0
	Total sustaining capital	$M	4.9
	Avg. annual free cash flow	$M	41.4	$66.5
	After-tax NPV(5%)4	$M	102.8
	After-tax IRR4	%	48.1
	Payback period2	years	1.7

[nozzpack]

Not many open pit gold mines in Canada yet. Found these three.... Mine                                  Grade                 Total Cash Cost Mulatos                             1.46 gpt     &

[nozzpack]

What I forgot to mention is that cash costs are inversely proportional to gold grade . HD grade is 4.5 grams per ton....among  if not the highest open pit gold mine grades in Canada Reported  open pit 2024  total cash costs of  $837 USD  for these three open pit mines  occurred at normal open pit grades....less than 1.5 grams per ton . Physical Mining costs are the

[nozzpack]

Some other changes from the 2022 FS that offer significant gains in production from the same 2022 reseves . First. the Xray sorter recovers 95 % of the pre ROM ore before it goes to the crusher. This is a significant loss which at the current POG way exceeds to gains in trucking costs from HD to the mill. Which is why, besides the significant Capex and operating costs, the sorter wont be used .

[colt45acp]

Would not a 10+ mine life is what the big boys look for. jmo

[nozzpack]

Yes, and that will be the case when Stoger , Orion plus the new discoveries from 2022-23 drilling along with 2024-25 planned drilling  both infill and extensional are completed. Current Reseeves for HD and Stoger are over 300,000 ounces , Orion with nearly 300,000 ounces of Measured, Indicated and Inferred should add another 150,000-200,000 ounces of Reserves which gets us to at least 450

[colt45acp]

tHANKS. So there will be a build up period before we get a high sp say about 3-4 dollars in couple years. of coares 3000 gold would make it qucker. nes pas.

[colt45acp]

Nozz. when you get some time would you take a look a TAU .THEY RECENTLY DID a 1-10 R/S  CHANGE THERE MAME SYMBOL TO TAU. wHEN YOU GET TIME. Thanks in advance.

[nozzpack]

Will do . Check your inbox during the weekend ..

[colt45acp]

Would not a 10+ mine life is what the big boys look for. jmo