PEA Update - NumbersI have kind of already ran the numbers on the blog for the upcoming PEA.
The only thing I am really missing is the fattening up of the higher Grade zone closer to service...which will make the numbers even better.
The diamond price index is about roughly 10% since the PEA numbers were orignally ran.
Here is a chart I created assuming an 11% increment: (look at the middle chart)
Then I ran a seperate analysis (not including a 10% increase) that keeps the mill at peak cash flow past year 5 for a few more years. (ie. new material) (middle rows)
So, the PEA would be a cumulative effect from both these charts and also have a kicker with a bit more higher grade material in the earlier years.
The updated PEA will push for a pre-tax NPV (7.5%) discount at roughly CAD$1.3 billion.
So the after tax NPV (7.5) of CAD$1 billion is within reach.
There will be three key elements that need to be looked at when comparing the studies.
1 - How much increase in the IRR?
2 - How much increase in the NPV after tax (7.5%)?
3 - What is the ratio between after tax NPV and Capital cost.
Payback years should be rather similar as it is hard to squeeze a number that already sits at 2 years to something smaller.
LONG...PGD
EKIM