RE:RE:RE:RE:******RCG NEWS UPDATE****** Atlantic's NPV is about 8x larger than Dufferin's.
Dufferin's (note 1)
$89 post-tax NPV,5%
Ounces 214,050
Atlantic (note 2)
$629M post-tax NPV,5%
Ounces 1,735,000oz
St. Barbara bought Atlantic for C$2.90/sh or $690M. A 10% premium to the NPV.
Atlantic was using the “Aussie Model” – Reserves added to on an ongoing basis funded from cashflow – generates optimal NAV over time. Note 4. In contrast, RCG has a long way to go to reach production at Dufferin let alone adding to reserves. It is hard to make a direct comparison.
Atlantic lists the following Low AISC drivers. Some are appropriate for RCG too. Some are not.
* Location
* Medium Grade
* Open Pit
* Low Strip Ratio
* Excellent Recovery
* Canadian Dollar Exchange
===
Notes:
1)
NPV,5% post-tax $89.2M CAD
Ounces recovered 216,050oz
https://www.rcgcorp.ca/assets/docs/financials/063018-YE.pdf
2)
NPV,5% post-tax $629M CAD
Ounces recovered 1,735,000oz
May 2019 technical report pg 22-4
https://www.atlanticgoldcorporation.com/_resources/reports/Moose_Consolidated_2019_9May2019_reduced.pdf
3)
The May numbers of Note 2 are 50% higher than the March numbers. Wow!
NPV,5% post-tax $422M CAD
Ounces recovered 1,460,000oz
https://www.atlanticgoldcorporation.com/_resources/reports/Moose-River-Consolidated-Technical-Report_reduced.pdf
4)
The “Aussie Model” – Reserves added to on an ongoing basis funded from cashflow – generates optimal NAV over time – “quality long term producer”
pg 12
https://www.atlanticgoldcorporation.com/_resources/presentation/corporate_presentation.pdf