Montage Gold (MAU ) Q2 2024 earnings summary

Executive summary

• Montage Gold is advancing the Koné project in Côte d'Ivoire, targeting a 16-year mine life and over 300koz annual gold production for the first 8 years, with a low AISC of $998/oz and a Probable Reserve of 4.01Moz Au.

• In Q2 2024, the company focused on feasibility, permitting, and exploration, with key milestones including environmental and mining permit approvals and a major private placement.

Financial highlights

• Net loss for Q2 2024 was $11.2 million, up from $5.4 million in Q2 2023; net loss for H1 2024 was $16.3 million, compared to $10.9 million in H1 2023.

• Exploration and project investigation costs were $5.4 million in Q2 2024 (Q2 2023: $4.2 million); administration costs rose to $2.3 million (Q2 2023: $1.0 million).

• Share-based compensation increased to $2.1 million in Q2 2024 (Q2 2023: $0.3 million); restructuring costs of $1.9 million were incurred due to management changes.

• Cash and cash equivalents at June 30, 2024 were $33.3 million, up from $6.7 million at December 31, 2023, following a $35.2 million private placement in March 2024.

Outlook and guidance

• Front End Engineering Design is scheduled for H2 2024, with construction targeted to begin in Q1 2025, pending project financing.

• An additional 60,000m drill program is planned for H2 2024 to delineate further resources at priority targets.

• Project financing discussions are ongoing, with significant lender interest and a $180 million oversubscribed private placement closed in August 2024.