RE:RE:RE:RE:RE:Nice hometown write up
Hi, Kaminak is certainly a nice looking project. Here are some comparison points: Scalability to reduce cap ex to very small (under $50MM?) is not available at Kaminak. This is a big MIN plus. Half the cap ex or so has been done on the start up scale mine via the Johnson Camp acquisition. MIN has over 50% insider ownership. Kaminak under 2%. I guess to compare apples to apples we need to look at MIN's full scale mine plan (pre-fease) to Kaminak's PEA. Also current market cap. MIN $30MM - KAM $145MM KAM PEA: NPV of $522 million at a 5% discount rate and an IRR of 32.8% before taxes and mining duties, and an NPV of $330 million and an IRR of 26.2% after taxes and mining duties Mine life of 11 years with peak production of 231,000 ounces per annum (Year 1) and average LOM production of 167,000 ounces of gold All-in sustaining costs* of US $688/oz (including royalties) for LOM, generating an Operating margin of over US $560/oz or 42% Initial capital costs of $305 million (including a 15% contingency) Payback of 1.8 years pre-tax and 2.0 years post-tax Gross Revenue of $2.4 Billion and Operating Cash-flow of $1.24 Billion MIN pre-fease: Pre-tax Net Present Value (NPV) of $1.24 billion (after-tax $0.826 billion) at a 7.5% discount rate (using a copper price of $2.75/lb) Pre-tax Internal Rate of Return (IRR) of 59.7% (after-tax 44.7%) Pre-tax payback period of 1.8 years (after-tax 2.4 years) Initial estimated capital cost (excluding sustaining capital) of $284.74 million Average life-of-mine operating costs of US$0.68 per pound Other costs of $0.12 per pound, including Royalties of $0.029 per pound Annual production rate of 110 million pounds of copper for the first 14 years, then declining for a 20 year mine life, with a total of 1.682 billion pounds of copper produced over the life of the mine. Cheers