Monarch Mining Corporation

CN: GBAR

C$56.4m market cap

C$0.79 last close

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.

Investment summary

Monarch Mining Corporation was spun out of Monarch Gold (MQR) in January 2021. MQR sold its Wasamac and Camflo assets to Yamana for C$200m but retains a suite of potentially high-return projects as Monarch Mining. Its portfolio is located in the well-established and highly prospective Abitibi gold belt. Beaufor should start production in FY22, with minimal capex outlay. Once in production, its cash flows, combined with existing cash (Monarch Mining is debt free) will be invested in Croinor, expected to start up in FY24. Our valuation is C$0.99/share, comprising C$0.69 for Beaufor and Croinor and C$0.30/share for second-tier assets McKenzie Break and Swanson. With financing, Croinor could be brought forward, accelerating cash flows. Meanwhile, ongoing exploration, given the highly prospective locations, is likely to add to available resources and potentially to mine-life extensions, offering considerable valuation upside.

Y/E Jun
Revenue (C$m)
EBITDA (C$m)
PBT (C$m)
EPS (c)
P/E (x)
P/CF (x)
2019A N/A N/A N/A N/A N/A N/A
2020A 0.0 (1.9) (2.0) (2.2) N/A N/A
2021E 0.0 (2.6) (2.8) (4.1) N/A N/A
2022E 21.0 (1.8) (2.2) (3.1) N/A N/A
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Share price graph
Balance sheet
Forecast net cash (C$m) 15.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.0) N/A N/A
Relative* (11.7) N/A N/A
52-week high/low C$1.2/C$0.6
*% relative to local index
Key management
Jean-Marc Lacoste CEO