Wednesday, 8 January 2014

Junior Gold Mining M&A - Monument to Acquire Murchison Gold Project

Monument are in production in Malaysia, holding significant cash and cashflow due to low costs, valued at 0.35 book value and trailing PE of 3.5 (but lower gold prices now!).

There has been shareholder frustration as the company seeks to divert cash to a copper / polymetallic project. In particular Goldmet BV have a large holding and objected to a large potential capital raise to build out Mengapur. However the stockprice has bounced almost 50% over the past couple of weeks.
It looks as though a short covered, but not sure if this can explain such a jump?
There will still be concerns that the company is diluting the low cost asset at Selinsing.

In this period of few qualified buyers there may be opportunity to acquire cheap assets from distressed juniors.
Here they announce the $15m purchase of a former Homestake camp now held by Aussie junior Kentor/KGL. There has been recent investment in the mine camp and infrastructure but the project was put on care and maintenance. Part of these assets appear to have been bought by Kentor from ATW Gold, a name to send a chill through any venture investor.

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