MAU
💰 Montage Gold is valued at $500 million, with no further dilution expected until construction is complete.
📈 The company projects to produce 300,000 ounces of gold starting in 2027.
🌍 The project is located in a favorable jurisdiction with a strong management team.
⛏️ Montage Gold aims to expand its operations and potentially acquire other projects to become a mid-tier African gold producer.
@Academiadeinversion:
“I agree with you. I’ve had the order in place for months. I see it exactly as you do. The project is now financed and construction has begun. The problem this project had was that it required a lot of capital expenditure, and financing it alone didn’t seem possible. But thanks to the Lundins and the support of C and Quinton, they secured the money. It’s under construction and it’s amazing. Once it’s up and running, it will make a lot of money. It’s also a very large plant. The people they’ve brought in have changed the entire directive. The people who are there now all come from Endeavor and have a lot of experience in Africa. They are mainly looking to add one million ounces because the problem they have is that they have oversized the plant to make it quite large, with more than 400,000 ounces per year. Then, from year nine, I think, production drops quite a bit. So they want to find at least an extra million ounces. People who spoke with the team told me that the VP of exploration is quite clear that it can be found in the area. It’s a very prospective area of Ivory Coast, and they want to add that extra million ounces to expand for a few more years and then do M&A. They are very clear that they want to acquire other projects to create a kind of G Mining, similar to what G Mining is doing in South America. They want to do something similar in Africa, using this very large asset and its flows to buy other assets and develop them, creating a kind of mid-tier African gold producer from scratch. So yes, I love it. It has gone superb. I’ve had the order in place for months because I’m waiting to see if it hits the twos. The thing is that it’s a very large construction. It will take two years. They don’t expect production until 2027 or late 2026. Two years is quite a bit of time to build. There may be cost overruns, although that’s not normal in West Africa. They also made a very intelligent strategy, buying 50 million in put options so that if gold falls below, I think, 2600 or 2700, I’m not sure, the puts will already make money at maturity. So if gold falls, even if the project is worth less, they make money with the puts, which would be worth more. Very, very intelligent. I agree, Anesio. I love it. I think it can go very, very well. At this valuation, I’d like to buy it a little lower. Right now, it’s trading at, well, depending on the price of gold you put in, but at a spot price of less than, but at a gold price of more than 2600 or 2700, it’s at about 0.55 NAV, which is typical for a company under construction. So I want to see if I can buy it a little lower. The typical announcement of, ‘Oh, there have been cost overruns,’ and see if it falls a bit because, yes, I’m there waiting because it’s a very, very interesting company, especially with Lundin involved. And the team, people I told about the idea, then spoke with the management team, and they were all very confident. So people I told about the idea spoke with them, and they all ended up buying because that’s very, very interesting. The risks are the typical ones: that gold falls, that there are problems in construction, and so on. The project itself is quite simple. The rock is quite loose. It’s a fairly typical carbon-in-leach open-pit project. It doesn’t have anything strange. The strip ratio is low. The grade isn’t very high, and it requires a lot of capital expenditure. So it was the typical project where the problem was financing and getting it off the ground. They’ve done it. So now the difficult part is over. Now the issue is that they don’t mess up the construction.”
Watch the exact part of the video where Adrián talks about Montage Gold here:
Watch the video on YouTube.
Read more articles featuring the most recent analysis of Montage Gold (MAU) at this link: MAU stock.
