RE: RE: See you at the next PP in February C'mon peole don't act dumber than you are.
| Financial Return | |
| Payback from start of production (years) | 6.80 |
The PEA has a base case attached to it and some additional sensitiviity analysis based on current prices.
The bank or financier will base their decision to lend or invest on the base case economics which uses a three year trailing average gold price of $1470. No different than any other mining company that has issued a PEA or PFS. This has generated a payback figure of 6.8 years. That's why the base case is outlined in large bold letters.
The 4.8 years sensitivity analysis based on current prices while nice to know has no relevance in the financing decision. No finance person wil use today's gold price in any cost model.
Any way you look at it the PEA is terrible.