2024-02-23 05:45:31 ET
Summary
- As gold hits new highs, M&A is heating up in the gold sector.
- Montage Gold's Koné Gold Project is expected to be shovel-ready within 6 months.
- MAUTF currently trades at 1/3rd to 1/5th the valuation of recently acquired peers, providing large upside potential.
Montage Gold Overview
Gold miners - mid-tiers and majors included - have been seeking ever-larger mining projects. With 4Moz of reserve and a first-three-year expected average production of 349koz, Montage Gold's (MAUTF) (MAU:CA) Koné gold project is the largest undeveloped standalone gold project in West Africa. LOM AISC of $998/oz compares favorably to the current costs of most mining companies, and of course to the current price of gold at roughly $2000/oz. NPV5 at $1850 gold is estimated to be $1.1B, which gives the project an attractive NPV5/capex ratio of 1.53. Additionally, the large 2259 km2 land package surrounding the main Koné deposit is extremely prospective, with many significant initial discoveries made waiting for follow-up drilling....
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Montage Gold Could Be The Next African Gold Project To Be Acquired