Mawson Finland (MFL.V) made all of its shareholders very happy with its IPO as the most recent financings were priced at C$1/share (including the IPO financing) while the stock is trading firmly above C$2 and holding its ground.
The company has now confirmed it expects to receive the assay results from its 12,070 2024 winter drill program on the Rajapalot project ‘shortly’ and we expect to see a combination of assay results that will be likely help to increase the confidence in the current resource calculation as well as increasing the size of the current resource (which stands at 9.8 million tonnes at 2.8 g/t gold and 441 ppm cobalt in the inferred resource category). Any resource expansion would likely have a positive impact on the economics of the project.
As a reminder, the after-tax NPV5% of the project is approximately C$450M using $2000 gold and a cobalt price of $60,000/t. But although the cobalt price is currently less than half the price used in the PEA calculation, the gold price is substantially higher than the $2000/oz shown in the prospectus of Mawson Finland. In any case, we expect Mawson Finland to publish an updated resource calculation and update the PEA upon exploration success in the 2024 and the upcoming Winter 2025 drill campaign.
Disclosure: The author has no position in Mawson Finland. Please read the disclaimer.
