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.
Subscribe for free to get exclusive insights and fair value data.
Price and Volume (1-year)
*Qualified Person (2019 Resource Estimate) - Frank Blanchfield, an employee of Snowden
* Monument Mining Limited has paid FRC a fee for research coverage and distribution of reports. All figures in US$ unless otherwise specified. See last page for other important disclosures, rating, and risk definitions.
Owns a producing gold mine in Malaysia, and exploration projects in Western Australia
Total independently verified (NI 43-101 compliant) resources of over 1.2 Moz Au
Portfolio Summary
Production (Year-End: June 30th) - Oz
MMY has been processing sulphide materials since December 2022, producing a total of 100 Koz by December 2025
Source: FRC / Company
Q2 production rose 19% YoY, beating our estimate by 6%, driven by higher throughput and recoveries
Cash Costs Per Oz
Source: FRC / Company
Cash costs were up 40% YoY to $1,288/oz, vs our estimate of $920/oz, mainly due to higher gold-price-linked royalty payments
Gross profit was up 65% YoY to $2,909/oz
Reserves and Resources (Snowden NI 43-101 Technical Report: 2019)
*Qualified Person - Frank Blanchfield, an employee of Snowden
Source: Company
With 550-600 Koz of sulfide resources remaining, we believe the mine could produce for approximately 12 more years
Financials (Year-End: June 30th)
Driven by higher gold prices, Q2 revenue rose 149% YoY, EBITDA +181%, and EPS +117%
Revenue topped our forecast by 25%, with EPS ahead by 13%
Margins improved across the board YoY, remaining well above sector averages
YTD free cash flows were up 8% YoY
Source: FRC / Company
As a result, the balance sheet strengthened, with $87M in working capital, and no debt
FRC Projections and Valuation
Source: FRC
With production exceeding our forecasts and gold prices trending higher, we are raising our estimates across the board
Source: FRC/S&P Capital IQ
MMY is trading at a 59% discount (previously 44%) to comparable junior gold miners
Applying sector multiples, we arrived at a fair value estimate of $2.06/share (previously C$1.99/share) on the Selinsing mine
Source: FRC
Using a sum-of-parts valuation, we arrived at a fair value estimate of C$2.10/share (previously C$1.92/share)
We are reiterating our BUY rating, and raising our fair value estimate from C$1.92 to C$2.10/share. MMY has delivered exceptional YoY performance, driven by strong gold prices, higher production, and promising exploration results, yet it remains significantly undervalued relative to peers at 1.67x forward EBITDA. With continued resource growth potential and a positive gold outlook amid geopolitical uncertainty, we believe MMY presents a compelling opportunity.
Risks
We believe the company is exposed to the following key risks:
We are maintaining our risk rating of 3 (Average)
APPENDIX
