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Monarch Gold Corp – MQR.TO

Discussion in 'Canadian Stocks Message Boards' started by Dan Thunderbolt, Dec 24, 2019.

  1. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    I am very bullish on Monarch if gold stays at around $1,500. This stock has multibagger potential if gold moves up even higher. The current market cap is very low in my opinion.

    http://monarquesgoldfiles.com/documents/files/Corporate-Presentation-PDF-EN.pdf

    Slide 2

    Main focus: Wasamac gold project
    Ø Positive feasibility study (December 3, 2018)
    Ø High return: $522M NPV and 23.6% IRR (all pre-tax)
    Ø Solid output: 142,000 oz/year over 11 years
    Ø Low cost: US$550/oz production cash costs
    Ø Based on US$1,300 gold price

    Continuous value creation
    Ø Acquisition of the Fayolle high-grade gold deposit
    Ø Holds 10.2% stake in Unigold (TSXV: UGD)
    Ø Drilling ongoing on McKenzie Break
    Ø Monetization of non-core assets and royalties

    Solid financial position and financial partners
    Ø Cash and short-term investments: $8.7M1
    Ø Strong asset base with two working mills and six advanced stage gold projects
    Ø Major partners include Alamos Gold, Hecla Mining, Rob McEwen,
    Greg Chamandy, Agnico Eagle Mines and several Quebec funds

    Attractive valuation
    Ø Enterprise value of $16/oz vs peer average of $54/oz
    Ø Market capitalization of ~$55 million
     
  2. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Below is a link to an interesting interview with the CEO of Monarch. According to the CEO (6.50 min in the interview), the two mills Monarch currently owns are worth the same as the current market cap of Monarch - $60 million.

    15th November 2019
    SWISS MINING INSTITUTE
     
  3. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Below is a link to an interview with David Erfle, editor of the Junior Miner Junky newsletter. According to him Monarch could be a 10-Bagger (interview at around 18:40).

    David Erfle Focuses on Developer Optionality Plays for 10-Baggers
     
  4. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    This presentation gives the most comprehensive overview of Monarch’s numerous assets. Restart of Beaufor Mine is targeted for mid-2020 coupled with a drilling program (Potential for ~714,000 new ounces)

    Monarch Gold Corp. Presentation | October, 2019
    Recorded by Red Cloud Financial Services at XPLOR 2019
    10/24/2019

     
  5. Dan Thunderbolt

    Dan Thunderbolt Active Member

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  6. Dan Thunderbolt

    Dan Thunderbolt Active Member

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  7. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Monarch Gold Generates Second Quarter Revenue Of $2.5 Million
    January 28, 2020
    https://www.monarquesgold.com/news-...nerates-second-quarter-revenue-of-2-5-million

    Financial highlights
    • Monarch recovered a total of 2,606 ounces of gold from the cleaning of its Camflo mill.
    • The Corporation posted second quarter revenues of $2.5 million mainly from the sale of 1,383 ounces of gold at an average price of $1,771 (US $1,346) per ounce.
    • As at December 31, 2019, the Corporation had $5.1 million in cash, $3.6 million in short-term investments and 500 ounces of gold in inventory.
    • Monarch currently has a combined measured and indicated resource of 3.2 million ounces of gold with an inferred resource of 1.1 million ounces, including proven and probable reserves of 1.8 million ounces of gold for the Wasamac deposit (see table at the end of the release).

     
  8. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Good buying opportunity here below 20 cents imo.

    Strengthening of the Board of Directors with the appointment of Laurie Gaborit
    https://www.monarquesgold.com/news-...nerates-second-quarter-revenue-of-2-5-million

    Last October, we announced the appointment of Laurie Gaborit to the Corporation’s Board of Directors. Laurie has over 20 years of experience in investor relations and corporate communications, her most recent position being that of Vice President, Investor Relations, with Detour Gold Corporation. As a key member of Detour Gold’s management team, she participated in the company’s initial public offering in 2007 and its transformation from exploration company to intermediate gold producer within a seven-year period, during which time Detour Gold’s market capitalization increased from $120 million to over $3 billion. In addition to her skills, her in-depth knowledge of the financial markets will be of great value to the board as Monarch pursues the development of its gold projects in Quebec (see press release dated October 29, 2019).
     
  9. Dan Thunderbolt

    Dan Thunderbolt Active Member

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  10. Dan Thunderbolt

    Dan Thunderbolt Active Member

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  11. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    In addition to the two mills Monarch owns, Monarch has $5.1 million in cash, $3.6 million in short-term investments and 500 ounces of gold in inventory.

    The current market cap of Monarch is around $47 million. Go figure...
     
  12. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Stock has moved up quite a bit recently :)

    As previously mentioned Monarch has multibagger potential imo...
     
  13. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Monarch Gold is one of the most intriguing stocks in the gold sector imo. Monarch has 2 functional mills (2,300 tpd) which are valued at over $50 million. The current market cap of Monarch is ~ $50 million.

    With the current price of gold of $1650 Monarch’s flagship project Wasamac has a pre-tax NPV of $1 billion. Monarch started a 2-year permitting process in December 2019. Wasamac has projected 142,000 ounces/year over 11 years. US$630/oz all-in-sustaining costs. CAPEX of $464 million which can potentially be reduced by $230 million for mill and tailings facility if they decide for custom milling as Wasamac is right next to a railway system. Wasamac has exploration potential in all directions. Monarch’s land portfolio is in a top jurisdiction.

    Near term production opportunities are in particular the Beaufor Mine and Fayolle:
    • The Beaufor Mine has one year mine life left (Measured Resources 16,100 ounces). Mine is on care and maintenance. Monarch is currently seeking partnership to increase reserves and restart mine within a 12- to 18-month timeline. According to previous communication from the company there is the potential for ~714,000 new ounces with a $4M to $6M drilling program.
    • Fayolle is a potential near term cash windfall. 6 gram open pitable 75,000 ounces and Monarch’s mill right next to it. According to previous communication from the company Fayolle could bring easily $50-$60 million in profit in a year and a half. The launch of the permitting process is expected in spring this year and permits delivery in 2021. A prefeasibility study is targeted for Q2 2020.
    As at December 31, 2019, the Corporation had $5.1 million in cash, $3.6 million in short-term investments and 500 ounces of gold in inventory.

    Multibagger potential imo
     
  14. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    The current market cap of Monarch equals the value of the two mills they own plus cash and short term investments. The way I see it is that at the current share price of MQR you you get the ounces of Gold in the ground for free.

    With gold above $1.700 and several advanced projects Monarch seems very cheap imo.
     
  15. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Nice, today Monarch published results from hole 1 of 7 at Fayolle.

    Monarch Gold Intersects 3.33 G/T Au Over 109 Metres (358 Ft) At Its Fayolle Gold Project
    April 30, 2020

    • Hole FA-19-121 (first of seven holes) returned 3.33 g/t Au over 109.0 metres (358 ft), including 10.27 g/t Au over 7.0 metres, 9.14 g/t Au over 6.0 metres, 7.68 g/t Au over 5.0 metres, 7.50 g/t Au over 8.0 metres, and 6.80 g/t Au over 4.9 metres.
    • The lower portion of the interval assayed 3.33 g/t Au over 32.9 metres immediately below the current planned constrained pit outline and could potentially increase the in-pit gold resource.
    https://www.monarquesgold.com/news-...109-metres-358-ft-at-its-fayolle-gold-project
     
  16. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Yesterday's news of the possible pit extension at Fayolle is great news. Fayolle is a possible near term cash windfall for the company. Monarch is currently proceeding with the Feasibility Study for Fayolle. Completion is expected in Q2 2020. The 2013 PEA had indicated C$38.5 Million of net cash flow at C$1,518/oz with After-Tax IRR is 110%. Today’s gold price is C$2,400/oz. Capex for Fayolle is manageable with initial costs of C$ 5.9 Million. Total Production is 74,813 oz at cash operating costs of $721 US/oz.

    Hopefully the results of the remaining 6 of 7 drill holes will continue to exceed expectations.

    Monarch is still heavily undervalued in my opinion. Monarch has several great assets in its portfolio in a top notch jurisdiction.
     
  17. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    This is a good time listen again to the 10 Bagger podcast from October past year. According to David Erfle, Editor Junior Miner Junky Newsletters, Monarch is a potential 10 Bagger if Gold stays above $1.500. Well, today Gold is much higher and the outlook looks very bright imo…

    (interview at around 18:40 is on Monarch)
     
  18. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Nice to see that Monarch is finally getting some exposure :) This is only the beginning imo...

    https://microsmallcap.com/4-hot-gold-penny-stocks-buy-05-01-20/
    4 Hot Gold Penny Stocks to Buy in May 2020

    Monarch Gold Corp. had a particularly exciting day in the markets Thursday after reporting high-grade gold intercepts at its Fayolle gold project in Quebec.

    According to Monarch Gold CEO Jean-Marc Lacoste, the first diamond drill hole has confirmed the block model and wireframe output and surpassed the company’s expectations in terms of gold grade and continuity of the mineralization.

    “Hitting significant economic gold values below the planned constrained pit will likely add to the tonnage and ounces of the Fayolle deposit,” he added.

    Monarch is focused on producing 100,000 to 200,000 ounces of gold per year through its large portfolio of projects in the prolific Abitibi mining district. The company currently owns over 370 square kilometers of gold properties, including the Wasamac deposit, which has a measured and indicated resource of 2.6 million ounces of gold, the Beaufor, Croinor Gold, Fayolle, McKenzie Break, and Swanson projects.

    On Thursday, MQR stock increased by 13.64% to C$0.25 on the TSX and was up 18% to $0.18 on the OTC. The company’s share price has been on an upward trajectory for the last couple weeks after hitting a 52-week low of C$0.11 in March.

    The company has been busy making new discoveries, selling off certain assets, raising funds, and working to restart mining operations that are on care and maintenance.

    If Monarch Gold manages to restart operations at its Beaufor underground gold mine in the next 18 months, as well as expand the mine’s resource, it might not remain a gold penny stock for long.

    Monarch Gold has a market cap of C$59.3 million, with 269,621,119 shares issued. It is currently selling for C$0.25 on the TSX and for $0.17 on the OTC.
     
  19. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    :)

    CDPQ Invests $5 Million in Monarch Gold to Support the Potential Re-Opening of the Beaufor Mine
    May 7, 2020
    • The Corporation will undertake an extensive 42,500-metre drilling program on Beaufor.
    • Monarch will incorporate artificial intelligence technologies to optimize target selection for its next drilling program using advanced analytics.
    • The ultimate goal is to restart gold production at the Beaufor mine within 12 to 18 months to take advantage of the bullish gold market.
    May 7, 2020 /PRNewswire/ - MONARCH GOLD CORPORATION ("Monarch" or the "Corporation") (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) announces that it has signed an agreement with Caisse de dépôt et placement du Québec ("CDPQ") to sell a 3% net smelter return royalty on gold production at the Beaufor mine (the "NSR") for $5 million."

    https://www.monarquesgold.com/news-...-the-potential-re-opening-of-the-beaufor-mine
     
  20. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    I like the deal with CDPG (Caisse de dépôt et placement du Québec). According to previous presentations from the CEO there is the potential for ~714,000 new ounces with a $4M to $6M drilling program at the Beaufor Mine.

    Market cap of Monarch is still way too low imo considering that the two mills they own are worth around C$50 million.
     

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