Assumptions
1....Concentrate sells at a price 72.5 % of POG
2....Inferred Sulphides of 150,000 ounces Converted to Mineable @ 85 %
3...LOM cash flow discounted at 5 %
The $210 million US NPV5 discounted cash flow fair value needs to be adjusted for sustaining capital.
I estimate this @ $ 2.5 m per year = $25 million LOM
Fair value is then $ 185 m US = about $225 million CAD = $0.65 per share | | | | | | | | |
| LOM | Average Production | Gold Price USD | Concentrate Price | AISC /Oz | Mass Pull | LOM Cash flow USD | NPV5 |
Floatation Valuation | 10 years | 40.000 | $2000.00 | $1450.00 | $725.00 | 4.1% | $290 m | $210 m |
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