Exploration Co. Advances Kone Gold Project
Research Report

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Disclosures for Ventum Capital, Montage Gold Corp., September 27, 2024

Analyst Certification I, Alex Terentiew, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.

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Ventum Capital analysts Alex Terentiew and Maximilian Myers, in a research report published on September 27, 2024, initiated coverage on Montage Gold Corp. (MAU:TSX.V) with a Buy rating and a price target of CA$2.90. The report follows Montage's significant developments over the past eight months, including an updated feasibility study, strategic equity financings, and key permitting milestones for its Koné Gold Project (KGP) in Côte d'Ivoire.

Terentiew and Myers highlighted the company's transformation, stating, "Over the past eight months, Montage has significantly evolved, with an updated feasibility study ("FS") announced in January, followed by two equity financings raising CA$215M and several new strategic shareholders joining the register, along with new management and Board members."

The analysts emphasized the strength of Montage's team and shareholder support, noting, "Led by a team of ex-Endeavour Mining professionals and backed by the Lundin family and Zijin Mining as 19.9% and 9.9% shareholders, respectively, we are optimistic about Montage's ability to extract value for all stakeholders, taking its Koné Gold Project ("KGP") forward into construction in 2025."

Regarding the KGP's potential, the analysts stated, "With exploration defining higher-grade targets, we view the lower-grade second half of the KGP's life as a conservative baseline with strong potential to improve in grade and cash flow over time." They added, "To reflect some of this upside potential, we incorporate additional resources into our forecast production model, ultimately supporting a 300+ Kozpa, 20+ year project with room for more growth."

Terentiew and Myers highlighted several key reasons to own Montage Gold, including:

1. The right team with strong shareholder support
2. High growth aspirations
3. KGP is a solid foundation for growth
4. Exceptional exploration upside
5. Fully permitted project
6. Attractive physical operating attributes
7. Valuation upside

The analysts' valuation methodology for Montage is based on a discounted cash flow (DCF) approach. They explained, "Our CA$2.90 target price and Buy rating are derived by applying a 0.7x multiple to the asset value of our fully-financed NAVPS estimate (7% discount rate) of CA$3.40/share."

Terentiew and Myers noted potential catalysts, including:

1.  Financing package to advance Koné (Q4/24)
2. Exploration results and resource update, focusing on higher-grade satellite deposits (Q4/24)
3. Commencement of construction (Q1/25)

In conclusion, Ventum Capital's initiation of coverage with a Buy rating and CA$2.90 price target reflects a positive outlook on Montage Gold's potential in developing the Koné Gold Project, with significant upside from exploration and potential future M&A activities. The share price at the time of the report of CA$1.82 represents a potential return of approximately 59% to the analysts' target price.