Montage Gold is a Canadian mining company focused on the exploration and development of gold properties, particularly in West Africa.
Martino, congratulations on becoming the new CEO of Montage Gold! Before we discuss the future, could you tell us why the Koné project is so promising for both the company and West African mining?
Let me provide some background. After nine years at Endeavor, where we grew the market cap from $300 million to $8 billion and established the largest gold producer in West Africa, I felt it was time for a new challenge. I wanted to pursue a more entrepreneurial path, and that was when I connected with the Lundin family. We agreed to create a new African vehicle with their backing, essentially aiming to recreate what we achieved at Endeavor. In September of last year, I left Endeavor and started due diligence on various opportunities with a team led by Peder Olsen. We scanned Africa for promising projects and ultimately landed on Montage Gold.
Montage stood out because of its quality asset in a stable country like Côte d'Ivoire. Côte d'Ivoire has one of the most diversified economies in Africa and is very stable. The Koné project itself ticks all the boxes we were looking for: a sizable asset, long mine life, low costs, and significant exploration potential. The project has a projected production profile of at least 300,000 ounces per year over the first eight years, with costs significantly below the industry average. The NPV at current gold prices is over $2 billion, making it a robust project to start with, and it offers us a solid foundation to build a company.
You recently received a final permit from the authorities in Côte d'Ivoire. What are the next stages?
Yes, our project is now fully permitted. We received the environmental permit in April and the mining permit in early August. Regarding timelines, we plan to start land compensation and relocation in Q4 of this year, which will allow us to begin construction in Q1 of next year. We anticipate a roughly 24-month build period, meaning we expect to be in production by the first half of 2027.
Could you tell us more about your relationship with local authorities and communities?
Our strong relationship with Côte d'Ivoire is built on years of operating in the country, allowing us to establish trusted partnerships. The government and local communities seek win-win partnerships that focus on local content, which aligns with our approach. The fact that we were able to meet with the President indicates that the government sees us moving in the right direction.
The government is pro-mining and understands the social and economic benefits a project like Koné can bring. We are planning to build the third-largest plant in West Africa and make the largest investment in Côte d'Ivoire, with over $700 million to be invested. This project is significant for Montage and equally important from the government's perspective.
Ae you considering further expansion after Koné, especially within West Africa given its rich gold deposits?
Absolutely.
Our goal is to build an exploration pipeline that feeds into a project pipeline. We are currently focused on consolidating our footprint in Côte d'Ivoire by bringing in additional exploration potential.
In due course, we will consider stepping outside of Côte d'Ivoire, but our immediate priority is to get the Koné project into construction.
What do you see as the main challenge for Montage in the next couple of years?
The main challenge is the speed of execution. As a junior company without cash flows, any delay means additional funding will be required, leading to dilution. Therefore, time is money, and we are acutely aware that delays in permitting, launching construction, or the construction timeline itself will impact returns for ourselves and our shareholders. To maintain our timelines, we must think ahead, plan meticulously, and ensure that today’s priorities solve tomorrow’s issues.
Are you confident that the price of gold will remain historically high?
Yes, I am confident. The key driver for gold right now is emerging market central banks diversifying away from the US dollar. When the US froze Russian assets, central banks took notice, and now countries like China are diversifying to ensure their assets cannot be frozen in future disputes. If China decided to match the US in gold per capita, it would need to buy every ounce produced for the next nine years. This fundamental shift will drive gold prices higher.
Additionally, retail demand for gold is strong, not just in Asia but also in the West. For instance, gold coins at Costco are selling out quickly, showing real demand. Unlike other commodities or stores of value, gold has proven its resilience as a store of value over decades. From a gold producer’s perspective, there is currently a significant disconnect between the gold price and underlying equities. As companies report higher cash flows due to these elevated prices, I expect the market to catch up and re-rate the sector.
What is your take on digital gold?
I believe there is a real need and demand for digital gold. Initiatives like the World Gold Council's 24/7 gold are making gold more accessible for the retail market, which is positive for the gold price. Anything that makes gold easier to access as a substitute for the US dollar or other currencies is beneficial.
Montage recently received investment from Zijin Mining, a Chinese company. Are you open to more such investments in the future?
We treat Zijin like any other shareholder. They hold less than a 10% stake, with no shareholder rights or board representation. While there have been concerns flagged by the Canadian government regarding foreign investments, our asset is outside Canada, and gold is not considered a critical metal. We are always open to other investors and treat all of them equally.
As the new CEO, what are your key objectives for Montage Gold over the next three years?
Our immediate goal is to launch construction by Q1 next year, with a two-year build period. Within three years, we aim to be in production, with Kone producing over 300,000 ounces per year. This will make it a sizable and relevant asset from day one. Beyond that, through our exploration success, we hope to identify the next project to build after Kone, potentially adding another asset to our portfolio within a five-year timeline.
