Analysts' Ideas - Most Gold Producers do not have this Positive Attribute

Monument Mining Limited (TSXV: MMY / FSE: D7Q1) Working capital of US$33M, with no debt. MCAP of US$25M implies that the market is assigning zero value to its assets. This company holds gold properties in Malaysia and Western Australia. Its 100% owned Selinsing gold mine has been in operation for 12 years, producing over 330 Koz, and generating over $465M in revenue, as of March 31, 2022.

Based on its resources, we believe the mine has 10+ years of remaining life at approximately 45 Koz per year. This company is currently constructing a flotation plant to start processing sulphide materials after depleting the remaining oxide/transitional materials. We are forecasting FY2022 (ending June 2022) and FY2023 production of 10 Koz and 22 Koz, respectively. Management is also evaluating the potential for building a bioleaching plant to process third-party concentrates. For conservatism, we are not including any upside potential from this opportunity in our valuation models.