Generation Mining (GENM.TO) seems to be enjoying renewed investor interest coinciding with its uplisting to the Toronto Stock Exchange. Hardly a surprise as the CSE is practically uninvestable for non-Canadian investors and most investors outside of the USA still aren’t too keen on an OTC listing.
Generation Mining continues to make progress on its Marathon palladium project in Ontario and has now signed agreements with all major parties that will be part of the feasibility study, which should be completed in Q1 2021. As Generation is guiding for a 7-8 month process, we can reasonably expect the feasibility study to come in at or around PDAC-time 2021. With almost C$14M in the treasury (and the remaining C$0.45 warrants now back in the money), Generation Mining appears to be fully funded to complete the feasibility study.
The feasibility study won’t just be a blind copy of the PEA as Generation Mining (and its consultants) are now working on a more aggressive production scenario with a higher throughput from Y1 on rather than building a 5Mtpa production scenario which then subsequently gets built out to a 8Mtpa operation. This updated scenario will very likely increase the upfront capex but with Palladium still trading at approximately $1800/oz both the NPV and IRR could become more attractive.
Disclosure: The author has a long position in Generation Mining. Generation is a sponsor of the website.
