Monument Mining (TSX-V: MMY, OTC: MMTMF), a junior gold producer with a mine in Malaysia, earned $68.80 million in its fiscal year to June 30, 2026, yet the whole company is valued at less than three times that figure. Microcap fund manager Tim Eriksen calls it "ridiculous" cheap but keeps only a modest position because he does not yet trust the board to spend its cash well. The shares have fallen 24% since the annual results, which showed fourth-quarter costs jumping.
This is journalism and commentary, not investment advice. We hold no position unless stated.
Key facts
- Ticker and exchange: Monument Mining Limited, MMY on the TSX Venture Exchange and MMTMF over the counter in the US.
- Situation type: deep-value small-cap gold producer with a large cash pile and a capital allocation question.
- The call: long, from Tim Eriksen (@eriksen_tim) of Cedar Creek Partners, in a fund letter dated October 19, 2026.
- Price: C$0.76 on the TSX Venture Exchange and US$0.54 over the counter at the October 19, 2026 close, the last close before the post.
- Earnings and cash: fiscal 2026 net income of $68.80 million, or $0.20 per share, with cash and term deposits of $109.56 million and no debt, per Eriksen.
- Cost pressure: fourth-quarter all-in sustaining cost was $1,898 per ounce, versus $853 a year earlier.
- Main risk: management could spend the cash on a costly new project, as the company did with Mengapur more than a decade ago.
Is Monument Mining a good bet right now?
On the numbers, it looks cheap. At US$0.54 and the 346 million shares Eriksen cites, Monument is valued at about $187 million. That is about 2.7 times fiscal 2026 earnings per share of $0.20. Take out roughly $0.32 per share of cash from June 30 and the rest of the business trades near 1.1 times earnings. Eriksen expects cash above $125 million by now, which would put it under 1 times.
The catch is that the market does not trust what happens next. The stock closed at C$1.00 on September 29, 2026, the day Monument released fiscal 2026 results, fell to C$0.87 the next day and was C$0.76 by October 19.
Why are investors bullish on Monument Mining?
- High gold prices. Monument sold 45,010 ounces in fiscal 2026 at an average of $4,280 per ounce, lifting revenue to $165.72 million from $98.64 million.
- Cash flow. Operating cash flow was $82.21 million and working capital was $122.86 million.
- Royalty upside. Monument kept a 1% net smelter royalty and a 20% free carried interest in the Tuckanarra project it sold to Odyssey Gold, which Eriksen says could add $20 million to $30 million of earnings over a few years.
- Takeover angle. Eriksen writes that a third party could offer a significant premium.
Who's making this call and why?
Tim Eriksen manages Cedar Creek Partners, a microcap fund that reported a 6.5% gain in the third quarter, 19.9% for the first nine months of 2026, and a 15.2% average annual return over 20 3/4 years, net of fees. Those are the fund's own figures.
In the Q3 2026 letter, which he shared on X, Eriksen writes: "Monument trades at a ridiculous valuation of less than one times earnings net of cash." He argues the board should be buying back shares. Monument paid a $0.02 special dividend in early 2026 but has no repurchase plan.
Track record: not yet scored. All of Eriksen's logged calls in our tracking are still open, none old enough to score yet. See the scoreboard.
Other voices:
- Anthony C (@a_chhoy), a small investor account, held the stock as of July 1, 2026, writing "The fortress balance sheet is the thesis."
Who disagrees?
- Eriksen himself is cautious. He writes: "Until we gain confidence in the board, Monument will remain a modest position." When he owned the stock more than a decade ago, Monument spent $60 million on the Mengapur project, issued discounted shares and warrants, and later sold Mengapur for half of what it paid.
- Idle cash. Correlation Economics (@GoldForecast) estimated 60% to 100% upside at a constant $4,400 gold price but said the upside is limited: "It's because they have so much cash on the balance sheet doing nothing."
- Rising costs. Fiscal 2026 cash cost rose to $1,243 per ounce from $814, and fourth-quarter sales were 9,581 ounces, near the low end of the 9,000 to 12,000 ounces per quarter that Eriksen says the mine produces.
- A partner dispute. Monument removed Odyssey's subsidiary as Tuckanarra joint venture manager effective September 25, 2026, and Odyssey disputes the move.
What are the key facts to verify?
- Monument's fiscal 2026 results release for earnings, cash, ounces and costs.
- The Cedar Creek letter for the share count, the cash estimate and the Mengapur history.
- Eriksen notes the Selinsing reserves have not been updated since 2018, with an estimated six-year mine life on the company website.
What would prove it right or wrong?
Right: Monument announces a buyback or another special dividend, quarterly costs fall back from the fourth-quarter level, or a buyer offers a premium.
Wrong: the cash goes into a large new project, the Tuckanarra dispute drags on with no royalty income, or a lower gold price cuts earnings.
This is journalism and commentary, not investment advice. We hold no position unless stated.