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Disclosure: Monument Mining Limited has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
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Price Performance (1-year)
Portfolio Summary
Owns a producing gold mine in Malaysia, and exploration projects in Western Australia. Total compliant resources of over 1.2 Moz Au
MMY has been processing sulphide materials since December 2022, with cumulative production exceeding 64 Koz by March 2025
Q3 production was up 74% YoY, and 11% QoQ, beating our estimate by 6%, driven by higher throughput and recoveries. While grade volatility is normal for miners, recoveries improved due to plant enhancements, and optimization
FY2025 (9M) production rose 34% YoY, due to higher grades, throughput, and recoveries. Driven by higher production, Q3 cash costs were down 1% YoY, and 5% QoQ, to $876/oz, closely aligning with our estimate of $880/oz
Gross profit was up 70% YoY, and 18% QoQ, to $2,071/oz. With over 700 Koz of sulfide resources remaining, we believe the mine could produce for 14 more years
Financials (Year-End: June 30th)
While Q3 production rose significantly, gold sales fell 7% QoQ due to sales cycle timing; however, this impact was offset by higher gold prices. As a result, revenue remained flat, while EBITDA increased 7% due to lower cash costs
Revenue beat our estimate by 3%, while EBITDA beat by 7%. EPS declined due to FOREX losses from a weaker US$, yet exceeded our estimate by 5%
Gross and EBITDA margins improved both QoQ and YoY, driven by lower cash costs. FY2025 (9M) revenue rose 80% YoY, while EBITDA surged 160%
Strong balance sheet, with $39M in working capital, and no debt
FRC Projections and Valuation
We are raising our EPS estimates due to higher gold prices, and stronger-than-expected Q3 production. Sector multiples are up 39% since our previous report in March 2025
MMY is trading at a 69% discount (previously 73%) to comparable junior gold miners. Applying sector multiples, we arrived at a fair value estimate of C$0.69/share (previously C$0.53/share) on the Selinsing mine
Valuation increased due to our higher revenue and EBITDA forecasts, and sector multiples
Our DCF valuation on Selinsing is C$0.58/share (previously C$0.46/share), driven by higher near-term EBITDA forecasts
Using a sum-of-parts valuation, we arrived at a fair value estimate of C$0.84/share (previously C$0.68/share)
We are reiterating our BUY rating, and raising our fair value estimate from C$0.68 to C$0.84/share. The company continues to deliver strong operational results, with record production, and declining costs. Despite a 246% YoY share price gain, MMY remains significantly undervalued relative to peers, with no debt.
Risks
We believe the company is exposed to the following key risks:
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