RE:RE:Updated numbers needed over next 3 daysHi topoftheridge - It was yesterday. They just release it for their customers I believe so not google-able. Here is the main text of the front page:
Investment Thesis:
Avnel holds one of the highest grade (2.80 g/t) open-pit projects in the sector. The asset is a likely takeout target in our view, given the elevated returns at even $1,000/oz (24% post-tax IRR at $1,000/oz) and the strong regional growth prospects.
Highlights:
Top-Tier Quality And Now Shovel-Ready Assets
With the timely approval of the Kalana ESIA, the asset is essentially ready for a construction decision in 2016. Recall that the recent definitive feasibility study (DFS) outlined a post-tax IRR of 38% and NPV5% of $257 MM with payback in just 1.2 years. In our view, Kalana is one of the more robust and fundable construction-ready assets in the space.
Funding Hurdles Are Low
Given the existing permit, robust payback and production history, we believe debt will be available at attractive terms. Additionally, the company has a history of financial support from its 42% shareholder (Elliot Group) who recently backed a new mine finance venture.
Retain Buy (S) Rating, Increase Target To C$0.70 (C$0.60 previously)
We update our target to reflect spot gold ($1,280/oz) and we reiterate the valuation disconnect with Avnel trading at 0.41x its fully funded and diluted spot NAV versus peers at 0.6-0.8x.