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Investing.com - Canaccord Genuity initiated coverage on Montage Gold Corp (TSX:MAU) (OTC:MAUTF) with a Buy rating and a price target of C$7.50.
The gold developer is advancing its flagship Koné Gold project in Côte d’Ivoire, which is currently under construction with first gold production expected in 2027. The company has strategic shareholders including the Lundin Group (19.6%) and Zijin Mining (9.5%).
According to Canaccord Genuity, the Koné construction is rapidly advancing, with 44% of the $835 million capital budget already committed. The project is progressing on time and on budget, with first gold pour targeted for the second quarter of 2027.
The 2024 Feasibility Study outlines life-of-mine average annual production of 223,000 ounces over an initial 16-year mine life, with production exceeding 300,000 ounces annually for the first eight years. The mine-site all-in sustaining cost is projected at $1,081 per ounce at a $3,000 per ounce gold price.
Montage owns 90% of the fully permitted, conventional open-pit project, with the government of Côte d’Ivoire holding a 10% free carried interest. The Feasibility Study generates an after-tax NPV5% of $3.1 billion and an internal rate of return of 66.2% at $3,000 per ounce gold.
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