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• Moon River published a PEA on the potential restart of the 25% owned Endako Molybdenum Mine.
• Endako is a large brownfield project that was once one of the largest molybdenum producers in North America.
• The PEA depicted a highly profitable operation utilizing the substantial existing infrastructure; After-tax NPV8% was $790M & IRR was 40%.
• Amazingly, we are anticipating MOO to publish a PEA on their flagship Davidson Project by year-end, another major catalyst for the Company.
This morning, Moon River Moly Ltd. (MOO:TSXV) announced the PEA on its 25%-owned brownfield Endako Mine. The PEA envisions an open-pit mine with flotation processing facilities on site, utilizing the substantial existing infrastructure on site. The study depicts a highly economic project, producing an after-tax NPV8% of $790M and an IRR of 40%, using a long-term moly price of US$22.50/lb. This is based on a 10-year mine life, processing 75ktpd or 27.3Mtpa. Initial capex for the mine restart is $494M, including an $84M contingency. Operating costs are low with the cash cost being US$11.61/lb and AISC of US$13.54/lb (highly impressive for a low-grade project). This results in an annual average moly production of 20.5Mlbs. We are highly impressed with today’s results, bringing up-to-date economics to a past producing operation, which gives us confidence in MOO’s plan to continue advancing this project. We are maintaining our BUY rating and increasing our target price to $2.80/share (prev. $2.20/share) on Moon River Moly.
Endako Mine Refresher
The Endako Project is MOO’s secondary molybdenum asset, ~190km west of Prince George, BC. The project is a large brownfield project which shut down operations in 2015. It is host to substantial existing infrastructure (see below), including a brand-new mill with a 50Ktpd capacity, an old 30Ktpd mill, an established mine site with little-to-no pre-strip required, power, water, and road access. As a reminder, MOO holds a 25% interest in the project, with Centerra owning the remaining 75%.
Davidson Project – Upcoming PEA
The Davidson Project, which makes up the majority of our MOO valuation, reported a PEA in 2024 for the proposed underground mine. The study depicted compelling economics, including capex of $575M and operating costs of $38.24/t, resulting in a low all-in sustaining cost of US$7.92/lb molybdenum. This yielded a post-tax NPV8% of $601M and a post-tax IRR of 24% using a long-term moly price of US$21.50/lb. The upcoming PEA, which we anticipate before year-end, is expected to include an updated MRE as well as new estimates for copper and tungsten recoveries, marking another major catalyst for the Company.
MOO: Highly Economic PEA on the Endako Project
What you need to know:• Moon River published a PEA on the potential restart of the 25% owned Endako Molybdenum Mine.
• Endako is a large brownfield project that was once one of the largest molybdenum producers in North America.
• The PEA depicted a highly profitable operation utilizing the substantial existing infrastructure; After-tax NPV8% was $790M & IRR was 40%.
• Amazingly, we are anticipating MOO to publish a PEA on their flagship Davidson Project by year-end, another major catalyst for the Company.
This morning, Moon River Moly Ltd. (MOO:TSXV) announced the PEA on its 25%-owned brownfield Endako Mine. The PEA envisions an open-pit mine with flotation processing facilities on site, utilizing the substantial existing infrastructure on site. The study depicts a highly economic project, producing an after-tax NPV8% of $790M and an IRR of 40%, using a long-term moly price of US$22.50/lb. This is based on a 10-year mine life, processing 75ktpd or 27.3Mtpa. Initial capex for the mine restart is $494M, including an $84M contingency. Operating costs are low with the cash cost being US$11.61/lb and AISC of US$13.54/lb (highly impressive for a low-grade project). This results in an annual average moly production of 20.5Mlbs. We are highly impressed with today’s results, bringing up-to-date economics to a past producing operation, which gives us confidence in MOO’s plan to continue advancing this project. We are maintaining our BUY rating and increasing our target price to $2.80/share (prev. $2.20/share) on Moon River Moly.
Endako Mine Refresher
The Endako Project is MOO’s secondary molybdenum asset, ~190km west of Prince George, BC. The project is a large brownfield project which shut down operations in 2015. It is host to substantial existing infrastructure (see below), including a brand-new mill with a 50Ktpd capacity, an old 30Ktpd mill, an established mine site with little-to-no pre-strip required, power, water, and road access. As a reminder, MOO holds a 25% interest in the project, with Centerra owning the remaining 75%.
Davidson Project – Upcoming PEA
The Davidson Project, which makes up the majority of our MOO valuation, reported a PEA in 2024 for the proposed underground mine. The study depicted compelling economics, including capex of $575M and operating costs of $38.24/t, resulting in a low all-in sustaining cost of US$7.92/lb molybdenum. This yielded a post-tax NPV8% of $601M and a post-tax IRR of 24% using a long-term moly price of US$21.50/lb. The upcoming PEA, which we anticipate before year-end, is expected to include an updated MRE as well as new estimates for copper and tungsten recoveries, marking another major catalyst for the Company.
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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