RE:Macquarie Research: Buy rating & $1.00 target price for ICGAlso According to Macquarie Research:
Upside Potential of $2.25
Our upside scenario assumes at Lamaque South, ultimate reserves are
1.3mozAu with average annual production of 107kozAu, UG mining costs at C$77/t (~80% long hole), processing costs at C$25/t, initial capex at C$85m and sustaining capex at C$20m/year. If more shallow ounces are discovered at other “new plugs” it could imply a separate ramp for mining ore and an increase in annual production. This would provide additional mill feed and thus lower the milling cost. We also assume Lamaque Deep contains 4.0mozAu and is valued at $100/oz.
This is interesting not just that Macquarie mentions a potential 4moz at Lamaque Deeps (at $100 per oz?). But I doubt all the energy going into Lamaque South is for 1.3moz; my guess would be 4moz. Also, Sigma isn't mentioned with 2.3moz I&I or the potential from the other sites such as Parallel.
This underscores the question: why wait to go into production? Certainly I must be missing something.