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• Moon River provided an update on recent corporate activities, including the advancement of both its Davidson and Endako projects.
• MOO states that it plans to publish PEAs on both projects within the next 90 days, marking two major catalysts for the Company this fall.
• The Davidson PEA will incorporate new estimates for copper and tungsten recoveries, as well as the integration of ore sorting.
• The Endako PEA will examine the potential restart of the large brownfield project while also including ore sorting into the mine plan.
This morning, Moon River Moly Ltd. (MOO:TSXV) provided an update on recent corporate activities and ongoing technical evaluations at its Davidson Molybdenum Project and its 25%-owned Endako Mine. The update states that following several months of metallurgical, engineering, and ore particle-sorting assessments at both assets, the Company plans to release two Preliminary Economic Assessments (PEAs) within the next 90 days. Both PEAs, incorporating ore sorting technologies as well as other updates, are expected to have material effects on the previous economic studies and will be key indicators of further project advancement. We are maintaining our BUY rating and $2.20/share target on Moon River Moly.
Davidson Project
The Davidson Project, which makes up the majority of our MOO valuation, reported a PEA in 2024 for the proposed underground mine and a 7,000tpd processing facility. The 2024 PEA depicted compelling economics, including capex of $575M and operating costs of $38.24/t, resulting in an average all-in sustaining cost of $10.84/lb molybdenum (US$7.92/lb). This yielded a post-tax NPV8% of $601M and a post-tax IRR of 24% using a long-term molybdenum price of US$21.50/lb (current molybdenum price is ~US$33/lb).
Endako Mine
MOO holds 25% interest in the historic Endako Mine (Centerra 75%), which hosts a low-grade M&I resource of 169Kt at 0.04% containing 166Mlbs of moly, and an inferred resource of 47Kt at 0.04%. Using the economics depicted in the 2023 technical report, our NPV13% estimate using a high 13% discount rate (as MOO doesn’t own controlling interest) is $399M. Ore sorting tests have already proven to be positive (read our note here), and we anticipate that the ore sorting will have a significant impact on project economics, particularly due to the low-grade deposit.
MOO: Corporate Update; Two PEAs in Next 90 Days
What you need to know:• Moon River provided an update on recent corporate activities, including the advancement of both its Davidson and Endako projects.
• MOO states that it plans to publish PEAs on both projects within the next 90 days, marking two major catalysts for the Company this fall.
• The Davidson PEA will incorporate new estimates for copper and tungsten recoveries, as well as the integration of ore sorting.
• The Endako PEA will examine the potential restart of the large brownfield project while also including ore sorting into the mine plan.
This morning, Moon River Moly Ltd. (MOO:TSXV) provided an update on recent corporate activities and ongoing technical evaluations at its Davidson Molybdenum Project and its 25%-owned Endako Mine. The update states that following several months of metallurgical, engineering, and ore particle-sorting assessments at both assets, the Company plans to release two Preliminary Economic Assessments (PEAs) within the next 90 days. Both PEAs, incorporating ore sorting technologies as well as other updates, are expected to have material effects on the previous economic studies and will be key indicators of further project advancement. We are maintaining our BUY rating and $2.20/share target on Moon River Moly.
Davidson Project
The Davidson Project, which makes up the majority of our MOO valuation, reported a PEA in 2024 for the proposed underground mine and a 7,000tpd processing facility. The 2024 PEA depicted compelling economics, including capex of $575M and operating costs of $38.24/t, resulting in an average all-in sustaining cost of $10.84/lb molybdenum (US$7.92/lb). This yielded a post-tax NPV8% of $601M and a post-tax IRR of 24% using a long-term molybdenum price of US$21.50/lb (current molybdenum price is ~US$33/lb).
Endako Mine
MOO holds 25% interest in the historic Endako Mine (Centerra 75%), which hosts a low-grade M&I resource of 169Kt at 0.04% containing 166Mlbs of moly, and an inferred resource of 47Kt at 0.04%. Using the economics depicted in the 2023 technical report, our NPV13% estimate using a high 13% discount rate (as MOO doesn’t own controlling interest) is $399M. Ore sorting tests have already proven to be positive (read our note here), and we anticipate that the ore sorting will have a significant impact on project economics, particularly due to the low-grade deposit.
Underlying
MOON RIVER MOLY LTD
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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