Montage Gold Corp. (MAU) AI Stock Analysis

• Market Cap: C$842.48M
• Dividend Yield: N/A
• Average Volume (3M): 191.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: N/A
• EPS Growth: -64.01%
• Country: CA
• Employees: 60
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Mining
• EPS (TTM): -0.18
• Shares Outstanding: 351,032,900
• 10 Day Avg. Volume: 145,593
• 30 Day Avg. Volume: 191,674
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -18.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.05
• Price Target Upside: 68.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Montage Gold Corp.'s overall stock score of 45 reflects significant financial challenges, with ongoing operational losses and negative cash flow, despite a strong equity position. Technical indicators offer mixed signals, showing slight upward momentum but potential volatility. The valuation remains poor due to negative earnings and lack of dividend, indicating limited investor appeal.

Positive Factors

Investment Opportunity

Montage offers a scarce high-quality investment opportunity amongst gold explorers and developers, supported by a strong team with significant experience in West Africa.

Market Valuation

Montage trades at a discount to developer peers on an EV/oz basis, and as the company de-risks, this discount is expected to narrow as the company approaches its first gold pour.

Project Scale and Resources

The Koné project is highly attractive due to its large scale and potential for additional higher-grade resources, coupled with a simple flowsheet design and relatively low processing costs.

Negative Factors

Financing Risk

Ongoing negotiations for full project financing are a critical catalyst that could impact the project's progression.

Market Position

Despite its potential, Montage's trading at a discount suggests that the market may have concerns about the company's ability to fully realize its project potential.

Project Execution

The commencement of construction in the pre-construction stage Koné gold project is contingent on successful financing discussions, which poses a potential risk.

Montage Gold Corp. Business Overview & Revenue Model

Company Description

Montage Gold Corp is an mineral exploration and development company. Its objective is to focus on the exploration and development of the Montage Properties. Montage's mineral interests that collectively form the Montage Properties include the Morondo Gold Project (comprised of the Morondo Exploration Permit and the Djelisso, Gbatosso, Faradougou and Sisseple permit applications); the Korokaha Gold Project (comprised of the Korokaha North and South permits and the Diawala permit application); the Bobosso Gold Project (comprised of the Wendene permit and the Dabakala permit application); and the Zuenoula Est and Zuenoula Ouest permit applications, all of which are located in Cote d'Ivoire.

How the Company Makes Money

Montage Gold Corp. makes money through the exploration and potential development of gold mining projects, which involves identifying gold-rich properties, conducting detailed exploration activities, and advancing these projects towards production. Revenue is generated from the sale of gold extracted from these projects once they become operational. The company may also engage in strategic partnerships or joint ventures with other mining companies to share resources and expertise, which can contribute to its earnings. Additionally, Montage Gold might secure funding through equity financing or debt arrangements to support its exploration and development activities until the projects reach a production stage.

Montage Gold Corp. Financial Statement Overview

Summary

Overall, Montage Gold Corp. faces significant challenges in generating revenue and profitability within the mining industry. The strong equity position provides some financial stability, but the consistent operational losses and negative cash flow highlight ongoing financial difficulties. The company appears heavily reliant on financing activities to sustain operations.

Income Statement

Montage Gold Corp. has consistently reported zero revenue, resulting in negative gross and net profit margins. The company has shown no revenue growth, and all profitability metrics are negative, reflecting ongoing operational losses. The financial trajectory indicates challenges in achieving revenue and profitability.

Balance Sheet

The balance sheet of Montage Gold Corp. shows a strong equity position with a high equity ratio due to minimal debt. The debt-to-equity ratio remains extremely low, indicating low leverage. However, the company has a history of significant losses affecting return on equity. The stability provided by strong equity is a positive aspect despite operational losses.

Cash Flow

Cash flow analysis reveals substantial financing inflows and negative free cash flow, indicating reliance on external funding. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. Despite significant financing cash flow, free cash flow remains negative, suggesting cash management issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-148.32K	-231.38K	-190.98K	-181.01K	-138.06K	-48.39K
	EBIT
-36.09M	-18.56M	-8.48M	-23.52M	-10.11M	-5.20M
	EBITDA
-41.77M	-18.33M	-8.62M	-23.33M	-9.95M	-5.08M
	Net Income Common Stockholders
-42.03M	-24.42M	-9.89M	-23.46M	-10.26M	-4.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.59M	6.72M	8.69M	10.71M	32.99M	9.59M
	Total Assets
21.93M	45.69M	51.97M	23.41M	46.69M	21.93M
	Total Debt
0.00	139.55K	0.00	0.00	0.00	0.00
	Net Debt
-9.59M	-6.58M	-8.02M	-9.77M	-32.75M	-9.59M
	Total Liabilities
863.40K	1.34M	2.17M	1.10M	2.12M	863.40K
	Stockholders Equity
21.04M	44.34M	49.80M	22.31M	44.58M	21.04M
Cash Flow		Free Cash Flow
-30.67M	-17.79M	-8.18M	-22.79M	-9.39M	-3.93M
	Operating Cash Flow
-23.30M	-17.41M	-7.93M	-22.62M	-9.37M	-3.77M
	Investing Cash Flow
-7.43M	184.50K	-15.08M	-169.95K	-22.15K	3.59M
	Financing Cash Flow
213.13M	15.86M	21.26M	45.00K	32.61M	9.67M

Montage Gold Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MAU, the sentiment is Positive. The current price of 2.4 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.27, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 24.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MAU.

Montage Gold Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	75 Outperform	C$2.43B	23.27	20.56%	―	64.92%	185.22%
ORE	70 Outperform	C$382.21M	7.66	16.08%	―	5.77%	-35.11%
PRB	52 Neutral	C$342.60M	―	-113.17%	―	―	2.31%
Sector *	47 Neutral	$2.64B	-3.85	-29.39%	3.32%	2.72%	-29.67%
MAU	45 Neutral	C$842.48M	―	-29.27%	―	―	-64.01%

Montage Gold Corp. Corporate Events

Montage Gold Secures Major Financing Deal

Montage Gold Corp. has secured a US$75 million gold stream with Zijin Mining Group to finance the construction of its Koné project in Côte d’Ivoire, with production expected by Q2-2027. This is part of a larger financing effort totaling US$825 million, which also involves Wheaton Precious Metals International Ltd.

Montage Gold Begins Construction of Koné Project

Montage Gold Corp. has commenced construction of its Koné project in Côte d’Ivoire, with the first gold production expected in Q2 2027. The project is fully funded, and a significant milestone was marked by a groundbreaking ceremony attended by government officials and local communities. With strategic partnerships and an experienced management team, Montage is set to advance rapidly towards becoming a premier African gold producer.

Montage Gold Partners with Sanu for Guinea Exploration

Montage Gold Corp. has entered a strategic partnership with Sanu Gold Corp., acquiring a 19.9% stake to capitalize on Sanu’s promising exploration properties in Guinea’s Siguiri Basin. The partnership includes investments from the Lundin Family and AngloGold Ashanti, aimed at advancing Sanu’s ambitious 10,000-meter drill program. This move is part of Montage’s strategy to enhance its exploration efforts and unlock value in West Africa.

Montage Gold Enhances Koné Project Value

Montage Gold Corp. has strategically repurchased a 1% net smelter returns royalty on its Koné project in Côte d’Ivoire for $10 million, enhancing its exploration investment value. The company remains optimistic about its 60,000-meter drilling program aimed at boosting production and achieving significant resource discovery targets.

Montage Gold Secures Financial Stability with New Program

Montage Gold Corp. has launched a revenue protection program to secure a minimum gold price and ensure financial stability as it begins production at its Koné project. The program involves purchasing put options to maintain a minimum price of US$2,500 per ounce on 400,000 ounces of gold, allowing Montage to safeguard its margins and meet strategic goals. This initiative aims to provide the company with financial flexibility and the potential to accelerate debt reduction.