PEA this is how I see it, what about you?I think the PEA is fantastic! this is how I see it:
2,918,000 oz au measured and indicated
667,000 oz inferred
2,540,000 oz recoverable
Life of mine cash cost $680/oz
NPV pretax $970.2M US
NPV post tax $585.6M US
Assuming a major buys the company at $120/oz:
Using the existing recoverable oz the share value would be $2.90US or $3.80CAD
Assuming they can add another 1M oz the share value increase to $4.00US or $5.20CAD
Maybe a major will pay more than $120/oz with the low $680/oz cost??
Looking at it from an aftertax NPV perspective, in theory assumming they bring it into production and payout dividends of $5.50US or $7.20CAD. Not sure how else to understand the NPV #s?
So where does it go from here? As of Aug 31 they have about $4.8M cash another financing will probably be required if they continue to explore beyond the phase III program. They will probably expand the deposit but will there be some high grade discovery as well?
A buyout around $4-$5 coming?? or will they be pressing forward to expand the reserve? Your thoughts?