TSXV: MOX - Morien Resources' key asset is a 2% to 4% royalty on the recently restarted Donkin coking coal mine in Cape Breton, Nova Scotia. On Nov 30, MOX restarted its quarterly dividend program, which has the potential to grow significantly as Donkin continues to ramp.
Cash Flow Potential: annual Donkin royalty could range between C$10M and C$30M, based on the permitted rate of 3 MT annual saleable production over the 25-year mine life;
Donkin Restart: Production restarted in Q3-2022; commercial sales commenced in Q4-2022; Morien royalty income recommences in Q1-2023.
Crossover Coal Optionality: coking coal that also possesses high energy, allowing it to be marketed into the overseas steelmaking sector or into the domestic (Nova Scotia) and European thermal sector to offset the energy crises;
Established Operation with Infrastructure: over C$300M spent developing Donkin since 2015 by private U.S. coal developer, The Cline Group;
Capital Return Focus: continued share buybacks with active NCIB, quarterly dividend paid as a high percentage of its free cash flow, no debt.
Material Upside: quoted royalty revenue based on discount to spot market pricing, operator could increase production above permitted rates if a longwall is installed.
Morien Resources - morienres.com/
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19 янв 2023
