PINL:VLTAF - Post by User
Comment by
eebleron Apr 18, 2012 10:41am
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Post# 19807153
RE: RE: This is IRR for SSP ....
RE: RE: This is IRR for SSP .... There is also the potential that many investment houses are no longer able to buy VTR since it dropped below a certain price-point. It isn't a hard-and-fast rule, but if there are interested institutional buyers that have rules related to minimum price then they can't touch VTR right now regardless of how cheap it might be.
I think it is Goldman Sachs that is predicting a return to $1100-$1200 gold by 2015. Economic studies tend to take an average that usually is based on about a 5-year trailing aveage.
My guess for IRR based on $1600 gold is after-tax of 32%, and based on $1100-$1200 gold is after-tax of 20%. I also think they will project a 300k-315k ozs per year operation. At 1 g/t and 90% recovery rate, that scopes out to somewhere around a 28k-30k tpd operation.