Monarch Mining Corporation

CN: GBAR

Market CapC$61.7m

Last Close C$0.87

Monarch Mining Corporation is a Canadian gold explorer with one past producing asset, one major near-term project and two second tier projects in the Abitibi, Quebec, gold belt.

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Investment summary

Monarch Mining Corporation has moved closer to cash generation by confirming the reopening of its Beaufor mine and its Beacon milling operation by June 2022. It has also commenced recruitment and bolstered its cash through a C$6m bought deal private placement of shares and warrants. A new resource estimate will be prepared during summer 2021, which could add to the mine life and our valuation, which we keep unchanged at C$0.99/share, with increased production certainty potentially offsetting share dilution from the placement.

Y/E Jun
Revenue (C$m)
EBITDA (C$m)
PBT (C$m)
EPS (c)
P/E (x)
P/CF (x)
2019A N/A N/A N/A N/A N/A N/A
2020A N/A N/A N/A N/A N/A N/A
2021E 0.0 (3.8) (4.0) (5.9) N/A N/A
2022E 21.0 (2.8) (3.2) (4.6) N/A N/A
Industry outlook

M&A activity in the region has picked up, with the QMX Gold acquisition in January implying a valuation C$170/oz and a peer group trading at an average of C$61/oz versus GBAR at C$49/oz at the time of our initiation. Monarch announced on 20 May that it has commenced trading on the OTCQX:GBARF, which will facilitate trading in the stock by US investors.

Last updated on 21/06/2021
Content on Monarch Mining Corporation
Monarch Mining Corporation – Monarch’s magicians
Metals & mining | Initiation | 24 March 2021
Closeup of big gold nugget
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net debt (C$m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.6 (12.1) N/A
Relative* 0.3 (17.8) N/A
52-week high/low C$1.2/C$0.6
*% relative to local index
Key management
Jean-Marc Lacoste CEO
Mathieu Séguin VP, corporate development