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Wednesday, January 04, 2017 Derek Macpherson

Marlin Finishes Q4 with a Splash

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Marlin Gold Mining Ltd. (TSXV:MLN) announced another month of strong operations from its wholly owned La Trinidad mine in Mexico, reporting the third consecutive monthly record of recovered ounces. These robust operating results further support our view that Marlin is likely to deliver strong Q4 2016 and Q1 2017 financial results (see previous post), having reached a turning point in its operations at La Trinidad together with free cash flow (FCF) generation. We believe that the company is likely to use the FCF generated to fund its development projects, including the San Albino stream in Nicaragua and exploration/development work at its Commonwealth project in Arizona.  read more


Tuesday, December 06, 2016 Derek Macpherson

La Trinidad Likely to Deliver Meaningful Cash for MLN

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Following Marlin Gold Mining Ltd.’s (TSXV:MLN) conference call to discuss strong November operation results we have increased our go forward quarterly cash flow estimate for the company over the next two years. We now expect the company to generate US$17-19 million per quarter (was US$15-18 million), which equates annually to US$68-76 million, or US$136-152 million over the next two years of La Trinidad’s mine-life. Based on recent results and our preliminary go forward estimates, Q4 2016 and Q1 2017 are likely to be the best quarters. While a short mine-life at this point, this cash flow from La Trinidad should provide Marlin the ability to fund resource expansion efforts at La Trinidad (both brownfield and greenfield), ongoing exploration and development work at the company’s Commonwealth project in Arizona and the San Albino stream in Nicaragua. On a cash flow basis, the company’s current valuation is at a steep discount to peers. Based on our preliminary estimates, Marlin trades at ~1.0x 2017E cash flow versus peers at ~4.8x 2017E cash flow. While a discount is warranted, because of the short mine-life, the multiple should be closer to ~40% that of peers because La Trinidad’s cash flow allows them to fund future cash flow. In our view, ongoing production results and Q4 2016 financial results are likely to be the key catalysts for Marlin to re-rate.  read more


Monday, December 05, 2016 Derek Macpherson

MLN Delivers Another Excellent Month of Operations

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Marlin Gold Mining Ltd. (TSXV:MLN) announced a second month of strong operations from its wholly owned La Trinidad mine in Mexico. For November, the company reported monthly records stacked and recovered ounces. We believe that these positive operating results further support our view (see previous post) that Marlin has reached a turning point and is now generating free cash flow (FCF) at La Trinidad and is poised for a strong Q4. In our opinion, this transition is important as the company can use the FCF generated at La Trinidad to fund its development projects, including the San Albino stream in Nicaragua and exploration/development work at its Commonwealth project in Arizona.  read more


Thursday, November 03, 2016 Derek Macpherson

MLN’s La Trinidad Transitions to Positive FCF

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Marlin Gold Mining Ltd. (TSXV:MLN) provided an operational update from its wholly owned La Trinidad mine in Mexico. The company reported records for both ounces stacked on the leach pads and recovered in the month of October. As well, the company expects this level of production to persist for the remainder of the La Trinidad’s current 2+ year mine-life. In our view, these operating results indicate that the company has reached a turning point in its operations and has started generating free cash flow (FCF). This transition is key, as the company can use the FCF from La Trinidad to fund its development projects, including the San Albino stream and exploration/development work at the company’s Commonwealth project in Arizona.  read more


Tuesday, October 18, 2016 Derek Macpherson

Marlin May be Entering a Phase of Exceptional Cash Flow

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Marlin Gold Mining Ltd. (TSXV:MLN) provided an operational update from its La Trinidad mine in Mexico, reporting that a record amount of gold has been stacked on the leach pad this month. This marks an important transition as higher grades and a reduced strip ratio should results in significant free cash flow from the mine over the next ~2 years. It is early days, but this is an important data point suggesting that the transition has happened. Besides ongoing operational updates, we expect the next key data point to be Q4 financial results which should start to reflect the cash generating potential. read more


Tuesday, June 21, 2016 Derek Macpherson

3 Themes & 10 Companies for a New Bull Market in Precious Metals

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While we believe that we are in a new bull market for gold equities, it is early days. As such, investors should remain selective and focus on companies that fit three key themes: scarcity, viability and catalysts. In our view AMI, ER, GRR, GQC, IDM, ICG, MLN, NUG, UGD and VIT are ten companies that fit these themes and should outperform peers. read more


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