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Wednesday, March 01, 2017 Derek Macpherson

Initial Drilling from MLN's La Trinidad May Extend Life

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Marlin Gold Mining Ltd. (TSXV:MLN) announced the first set of results from the ongoing drill program at its La Trinidad gold mine in Mexico. This is one of the value creating initiatives undertaken by Marlin now that La Trinidad is generating significant free cash flow. With three holes returning grades significantly higher than the resource grade over good intervals suggests that Marlin may have extended the mine-life beyond La Trinidad’s current mine-life, but it is early days. Today, Marlin also announced a new Normal Course Issuer Bid (NCIB) program under which the company intends to purchase ~2.5 million shares, which represents ~1.44% of the company’s current issued and outstanding common shares, over the next 12 months. Besides ongoing near-mine drilling at La Trinidad, the company has a number of upcoming catalysts including greenfield exploration at La Trinidad, exploration at its Commonwealth property and a detailed operating plan update for La Trinidad with Q4 financial results. We expect these catalysts along with ongoing operating updates to be positive catalysts for the stock. read more


Wednesday, February 08, 2017 Derek Macpherson

Marlin Continues to Execute at La Trinidad

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Marlin Gold Mining Ltd. (TSXV:MLN) announced another strong month of operations from its wholly owned La Trinidad mine in Mexico, and provided an update on operations going forward. We view the results to date positively and continue to expect the company to generate between US$17-19 million per quarter from La Trinidad over the next two years. The company is planning to release a detailed operating plan with Q4 2016 financials, at which time we expect to refine our estimates. Additional catalysts include near-mine drilling at La Trinidad (Q1 2017), ongoing exploration results from Commonwealth and a permitting update from San Albino on which the company has a gold stream - all of which we expect to be positive for the share price. read more


Thursday, February 02, 2017 Derek Macpherson

MLN Reports Best Interval to Date at Commonwealth

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Marlin Gold Mining Ltd. (TSXV:MLN) announced results from the tenth hole of the ongoing infill and step-out drill program at its wholly owned Commonwealth gold and silver project in Arizona. Hole 17CDDH10 returned the highest metal factor (grade x width) intercept reported on the property since 1972, intersecting 2.12 g/t over 55m, including 26.7m that returned 3.75 g/t AuEq. The hole intersected oxide mineralization only, hitting the Main Vein at a depth of 60m and continuing below the main structure to hit a secondary mineralized structure (Figure 1). The company plans to follow-up on today’s results during the ongoing drill campaign. In our view, today’s results further demonstrate the expansion potential of Commonwealth’s existing 1.2M oz AuEq (44Mt at 0.84 g/t AuEq) resource and we expect pending results to provide positive momentum for the stock. The company’s strong cash flow generation from La Trinidad, which we estimate to be US$17-19 million on average on a quarterly basis going forward, is funding the drill program at Commonwealth in addition to exploration efforts at La Trinidad (near-mine and greenfield) and the company’s financial commitment for the San Albino stream. read more


Monday, January 30, 2017 Derek Macpherson

MLN Reports Good Drill Results from Commonwealth

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Marlin Gold Mining Ltd. (TSXV:MLN) announced results from the first nine holes of the ongoing infill and step-out drill program at its wholly owned Commonwealth gold and silver project in Arizona. The first part of the drill program was focused on modest step-out from the existing resource and acquiring metallurgical samples for flow sheet optimization. Today’s results were highlighted by hole 16CDDH06 which extended mineralization by 100m along strike and returned 2.91 g/t AuEq over 25.8m, and infill hole 16CDDH09 which returned 2.27 g/t AuEq over 18.0m. The company plans on following-up on today’s results during the ongoing drill campaign as well as commencing a geochemistry and geophysics program to develop additional targets. The company’s strong cash flow generation from La Trinidad is funding this program along with exploration efforts at La Trinidad (near-mine and greenfield) and the company’s financial commitment for the San Albino stream. These results highlight the importance of that cash flow. read more


Wednesday, January 25, 2017 Derek Macpherson

MLN Reduces Debt with La Trinidad's Cash Flow

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Marlin Gold Mining Ltd. (TSXV:MLN) announced it has made an US$5.5 million dollar repayment, reducing the unsecured credit facility with its majority shareholder, Wexford Capital, to US$32.0 million (due January 2018). Following the payment and further investment in Golden Reign Resources (TSXV:GRR) to maintain its interest (18.94%), Marlin’s cash and refined gold totaled ~C$8.5 million. With January’s production and costs expected to be similar to December’s (9,924 ounces sold at cash costs below US$250/oz), the company is well positioned to fund near-mine and step-out exploration at La Trinidad, additional exploration and development activities at Commonwealth and fund the remaining commitments for its stream on Golden Reign’s San Albino project in Nicaragua. We highlight that although grades are expected to decline for the balance of 2017, we estimate that the going forward quarterly cash flow would on average be US$17-19 million for the remaining ~2 years of La Trinidad’s current mine life.  read more


Sunday, January 15, 2017 Derek Macpherson

RCKS Drilling Deeper Lunch Features Three Royalty Companies

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Last week, Red Cloud Klondike Strike Inc. (RCKS) hosted another installment as part of our Drilling Deeper lunch series, this time featuring three companies that own and are unlocking royalty value in unique ways. The presenting companies were AuRico Metals Inc (TSX:AMI), Marlin Gold Mining Ltd (TSXV:MLN) and Maverix Metals Inc (TSXV:MMX). We believe all three presenters have the potential to unlock value for investors through each company’s royalty and streaming assets. read more


Thursday, January 05, 2017 Derek Macpherson

MLN's Near-Term Cash Flow Should Fund the Future

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Following Marlin Gold Mining Ltd.’s (TSXV:MLN) conference call to discuss strong December operating results, we are maintaining our estimate for US$17-19 million per quarter of cash flow from La Trinidad. We highlight that this equates annually to US$68-76 million, or US$136-152 million over the next two years of La Trinidad’s mine-life. This cash flow is going to allow Marlin to fund near-mine and step-out exploration at La Trinidad, additional exploration and development activities at Commonwealth and fund the remaining commitments for its stream on Golden Reign’s (TSXV:GRR) San Albino project in Nicaragua. Our preliminary estimates suggest that Marlin is now trading at ~2.0x 2017E CF on a EV/CF basis versus peers at 4.6x. If you only account for La Trinidad and its short mine-life, this could be considered a fair valuation; however, it does not account for resource growth potential at La Trinidad, medium term production from Commonwealth or streaming cash flows from San Albino that the near-term cash flow from La Trinidad is expected to fund. This suggests that the stock has more room to run and in our view, further upside is likely to come from ongoing operating success, Q4 financial results demonstrating improved cash flow and exploration results from La Trinidad. read more


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


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