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TICKERS: MAU

Exploration Co. Advances Kone Gold Project
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Ventum Capital recently iniated coverage on Montage Gold Corp. (MAU:TSX.V), with a Buy rating. Read to see what the analysts see as catalysts for this exploration and development company.

Ventum Capital analysts Alex Terentiew and Maximilian Myers, in a research report published on September 27, 2024, initiated coverage on Montage Gold Corp. (MAU:TSX.V) with a Buy rating and a price target of CA$2.90. The report follows Montage's significant developments over the past eight months, including an updated feasibility study, strategic equity financings, and key permitting milestones for its Koné Gold Project (KGP) in Côte d'Ivoire.

Terentiew and Myers highlighted the company's transformation, stating, "Over the past eight months, Montage has significantly evolved, with an updated feasibility study ("FS") announced in January, followed by two equity financings raising CA$215M and several new strategic shareholders joining the register, along with new management and Board members."

The analysts emphasized the strength of Montage's team and shareholder support, noting, "Led by a team of ex-Endeavour Mining professionals and backed by the Lundin family and Zijin Mining as 19.9% and 9.9% shareholders, respectively, we are optimistic about Montage's ability to extract value for all stakeholders, taking its Koné Gold Project ("KGP") forward into construction in 2025."

Regarding the KGP's potential, the analysts stated, "With exploration defining higher-grade targets, we view the lower-grade second half of the KGP's life as a conservative baseline with strong potential to improve in grade and cash flow over time." They added, "To reflect some of this upside potential, we incorporate additional resources into our forecast production model, ultimately supporting a 300+ Kozpa, 20+ year project with room for more growth."

Terentiew and Myers highlighted several key reasons to own Montage Gold, including:

  1. The right team with strong shareholder support
  2. High growth aspirations
  3. KGP is a solid foundation for growth
  4. Exceptional exploration upside
  5. Fully permitted project
  6. Attractive physical operating attributes
  7. Valuation upside

The analysts' valuation methodology for Montage is based on a discounted cash flow (DCF) approach. They explained, "Our CA$2.90 target price and Buy rating are derived by applying a 0.7x multiple to the asset value of our fully-financed NAVPS estimate (7% discount rate) of CA$3.40/share."

Terentiew and Myers noted potential catalysts, including:

  1.  Financing package to advance Koné (Q4/24)
  2. Exploration results and resource update, focusing on higher-grade satellite deposits (Q4/24)
  3. Commencement of construction (Q1/25)

In conclusion, Ventum Capital's initiation of coverage with a Buy rating and CA$2.90 price target reflects a positive outlook on Montage Gold's potential in developing the Koné Gold Project, with significant upside from exploration and potential future M&A activities. The share price at the time of the report of CA$1.82 represents a potential return of approximately 59% to the analysts' target price.


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Important Disclosures:

  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Ventum Capital, Montage Gold Corp., September 27, 2024

Analyst Certification I, Alex Terentiew, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.

Research Disclosures Ventum Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12- month period. Ventum Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company

General Disclosure The affiliates of Ventum Financial Corp. are Ventum Financial (US) Corp., Ventum Financial Services Corp., and Ventum Capital Corp. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts and all other Research staff are not directly compensated for specific Investment Banking transactions. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Ventum Financial Corp. Ventum Financial Corp.’s policies and procedures regarding dissemination of research, stock rating and target price changes can be reviewed on our corporate website at www.ventumfinancial.com (Research: Research and Conflict Disclosure).

Participants of all Canadian Marketplaces. Members: Canadian Investment Regulatory Organization, Canadian Investor Protection Fund and AdvantageBC International Business Centre - Vancouver. Estimates and projections contained herein are our own and are based on assumptions which we believe to be reasonable. Information presented herein, while obtained from sources we believe to be reliable, is not guaranteed either as to accuracy or completeness, nor in providing it does Ventum Financial Corp. assume any responsibility or liability. This information is given as of the date appearing on this report, and Ventum Financial Corp. assumes no obligation to update the information or advise on further developments relating to securities. Ventum Financial Corp. and its aೀiliates, as well as their respective partners, directors, shareholders, and employees may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Ventum Financial Corp. may act, or may have acted in the past, as a ೃnancial advisor, ೃscal agent or underwriter for certain of the companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies. This report is not to be construed as an oೀer to sell, or the solicitation of an oೀer to buy, securities and is intended for distribution only in those jurisdictions where Ventum Financial Corp. is registered as an advisor or a dealer in securities. Any distribution or dissemination of this report in any other jurisdiction is strictly prohibited. Ventum Financial Corp. is a Canadian broker-dealer and is not subject to the standards or requirements of MiFID II. Readers of Ventum Financial Corp. research in the applicable jurisdictions should make their own eೀorts to ensure MiFID II compliance. For further disclosure information, reader is referred to the disclosure section of our website.





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