TSX:ASND - Post Discussion
Post by
stockfy on Aug 07, 2023 11:36am
14.5 years mine life, low annual CapEx, high adj. EBITDA
Facts quoted from the recent press releases proving that ASND's valuation at C$0.20 is dirt-cheap given that it owns now 80% of the Lagoa Salgada project:
Average All-in Sustaining Cost ("AISC") of US$0.59/lb ZnEq over first 5 years
Robust Average EBITDA of US$75.5 million per annum over the first 5 years Capital Costs: Upfront capital costs are estimated at US$164 million inclusive of US$12 million in contingency. A further US$102.9 million of sustaining capital is planned over the 14.5 year mine life, including closure costs. Pay back is in the order of 2 years with an after-tax IRR of 39%.
Project economics are based on the current Proven and Probable Reserves only for a mine life of 14.5 years and does not factor in the upgrading of additional resources or potential future exploration success.
The chart below demonstrates the robust free cash flow generation expected, especially in the first five years of operation. Cash flows during the first five years of production are estimated to average US$56 million per annum.
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