Banfora & free cashflowCan someone please advise the estimate for building the Banfora mine should the company pproceed? Am talking US$. Is is $100m, $150m?
Atm, TGZ has about ~$90m in the bank plus annual free cashflow of ~$200/oz and guidance of ~210,000 oz/pa will add $42m/yr. Assuming POG will not fall far from here, does this look any good with a payback period of 2 years by 2019-2020? Providing my assumptions, TGZ could have enough cash and earn enough to cover the deficit within 1-2 years of starting Banfora if capex is $150m and POG stays here ($1270/oz as I write).
I am very aware that the GDXJ rebalancing is (still) hanging like a sword of damocles, but this looks like a buy to my simple maths. Apologies if my numbers are way out.
Good luck to all.