Q: I hold a small position in Montage Gold and have done very well with the recent increase in the share price. Can I please get your thoughts on the company and what impact the recent announcement regarding the African Gold acquisition will have. Thanks!
5i Research Answer:
Market cap is now $3.1B, after the stock's 314% gain this year. It has $159M cash, no revenue, losses and negative cash flow (-$56M last 12 months). The $170M African Gold deal adds another project to its portfolio, and strengthens its overall position in Cote d'Ivoire. MAU is already the operator of the acquired Didievi project, so it fundamentally makes sense. The Kone project is currently under construction, with production expected in Q2 2027. If all goes well the company should get re-rated as a producer, over time. Insiders own 6%. It is interesting, but there are construction and sector risks here, and some political risks.