Matador Mining

Website: www.matadormining.com.au
Primary ticker: ASX:MZZ
Stage of development: Exploration, Development
Primary minerals: Gold
Project to promote: Cape Ray Gold Project
Project location: Canada
Company presentation: click here

Live financials

Cash: A$3.8M (March 2020)
Debt: NIL

Major shareholders:
Management ownership – 19%

Matador Mining is an ASX listed gold exploration and development company, focused on the expansion and development of our Cape Ray Gold Project in Newfoundland, Canada. The Company has the largest holdings along the Cape Ray shear (120km of strike), widely regarded as one of the most prospective, yet under explored regions in Canada.

The company has recently provided results from its scoping study which include following highlights:
– 100% owned Cape Ray Gold Project in Newfoundland, Canada confirms the viability of a standalone gold operation assuming an initial 7-year mine life.
– After-tax IRR of 51% and NPV8 of A$194M based on a US$1,550/oz gold price.
– Rapid after-tax payback of 1.75 years decreasing to 1.50 years at the current spot gold price.
– 7-year life of mine with total gold mined 504,000 oz, averaging 88,000 oz production per year during the first four years.
– LOM average Total Cash Costs of US$709/oz and All-In Sustaining Costs of US$776/oz.
– Initial total capital costs of US$102M (including US$6M mine development).
– Processing facility throughput of 1.2Mtpa with average head grade of 2.0g/t Au (LOM), and 2.56 g/t Au during the first 4 years of production.
– Environmental studies are well progressed with remaining baseline studies to be completed this year.

The Company is finalising its exploration strategy for 2020 with plans to recommence work on the ground during July

Management profile

Ian Murray – Executive Chairman

With over 25 years’ mining industry experience in senior leadership positions, including the position of Executive Chairman and Managing Director of Gold Road Resources Ltd (ASX: GOR) and DRDGold Ltd (NYSE & JSE: DRD), he has also held executive positions with international ‘Big Four’ accounting firms.

Mr Murray brings a wealth of financial, corporate, project development and operational experience to the Board and most recently led Gold Road as it transitioned from explorer to large scale gold producer. Mr Murray has been the recipient of many awards during his leadership of Gold Road, including the Gavin Thomas award for leadership, the Diggers and Dealers Deal of the year award in 2017, after winning the best emerging company award in 2011 as well as the CEO of the year award from CEO Magazine.

Mr Murray is a Chartered Accountant, a Member of Australian Institute of Company Directors, and holds an Executive degree in Advanced Management & Leadership from the University of Oxford, Saïd Business School.


What is your rationale for attending 121 Mining Investment?

121 Mining Investments provides the opportunity to promote and introduce Matador Mining to institutional investors and high-net-worth that will and play an active part in the trading of our stock.

What recent news would you like to highlight to investors attending?

We announced our scoping study earlier in May 2020. The results of the Scoping Study were an excellent achievement. The most important outputs we believe for any resource project is a strong IRR (post tax – 51%;), rapid payback (1.75yrs) as well as low operating costs (US$776/oz). W

The key driver for these robust returns is the exceptional high-grade open pit ore that is mined and processed during the first two years (2.72g/t Au) and first four years (2.5g/t au) of production, meaning the Cape Ray Project ranks as one of the highest grade open pit operations.

The Company also recently increased its holdings along the Cape Ray shear to 120km of strike to become the largest holder of ground in the under explored region. The Company will recommence exploration work in July 2020.

What recent news would you like to highlight to investors attending?

3 Months:

Recommence exploration and further strengthen the board

6 Months:

Continue exploration work and option study prior to a PFS

12 Months:

Increase the projects resource, identify new greenfield targets, commence work on a PFS

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Informing investors about the opportunity in Newfoundland and how an ASX listed company has the project. Outline the long term strategy for the Company.

What do you think makes your company such a compelling investment?

Matador provides the investor access to an undervalued (compared to peers) stock with a dual path to value accretion; 1) an advancing development story, based around an expanding resource base and; 2) exposure to a significant greenfields exploration package that has exposure to a productive regional controlling structure, with proven capacity to host camp scale gold deposits, both within a world class mining jurisdiction.

Analyst Insight – provided by Independent Investment Research

Matador Mining is an ASX-listed development company, focused on the expansion and development of our Cape Ray Gold Project in Newfoundland, Canada. The company’s land package is focused on 65km of strike on the productive Cape Ray Shear, which is a geological structure that extends around 400km through Newfoundland and is regarded as one of the most prospective yet under-explored regions in North America.

Following a review of historical drilling, as well as the completion of the company’s inaugural drill program during late 2018, a JORC 2012 resource comprising 14.25Mt at 2.2g/t Au for 1.02Moz Au, was defined at the project. This resource is contained within four areas – the Central Zone, Window Glass Hill, Big Pond and Isle Aux Mort – that cover a strike of around 14km. The majority of the resource is within the Central Zone, which hosts more than 800,000oz of gold at a grade of 2.6g/t Au. Central zone shows excellent potential for future open-pit operations, as well as significant underground potential. The Central Zone consists of five deposits across 2.5km strike length and has been the focus of most of the historical exploration work.

The company has recently provided results from its scoping study that confirm the viability of a stand-alone gold operation, assuming an initial 7-year mine life. The project boasts an After-tax IRR of 51% and NPV8 of A$194M based on a US$1,550/oz gold price. This would generate an after-tax payback of 1.75 years, decreasing to 1.5 years at the current spot gold price.

The project would have a 7-year life of mine with total gold mined of 504,000 oz, averaging 88,000 oz production per year during the first four years. LOM average Total Cash Costs of US$709/oz and All-In Sustaining Costs of US$776/oz. Initial total capital costs are estimated at US$102M (including US$6M mine development). The project would boast processing facility throughput of 1.2Mtpa with an average head grade of 2.0g/t Au (LOM) and 2.56 g/t Au during the first 4 years of production.

Environmental studies are well progressed, with remaining baseline studies to be completed this year.