GREY:RNKLF - Post by User
Post by
pierregon Oct 11, 2019 3:12pm
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Post# 30223312
HGO acquisition is accretive:between USD +144 M & +167 M
HGO acquisition is accretive:between USD +144 M & +167 MThe HGO acquisition is accretive: Positive between 144,520,000 USD & 167,240,000 USD. I will put the following quote in context, Paul Huet: « We all know the cost to drill an ounce of Gold. Try to go drill it with a drill bit it was costing me anywhere from 35 to 45 USD an ounce to find an ounce of Gold (https://ceo.ca/rnx?fb1135b94cf1).» With 1,9 M ounces Paul Huet excludes Proven & Probable ounces. See my calculations below.
HGO
Measured & Indicated & Inferred
1,905,000 OZ * 35 = 66,675,000 USD
1,905,000 OZ * 45 = 85,725,000 USD
Proven & Probable
367,000 OZ * 35 = 12,845,000 USD
367,000 OZ * 45 = 16,515,000 USD
Mill replacement cost = 100,000,000 USD. Page 8 (https://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1ep9u8b-RNC%20-%20Investor%20Presentation%2024-Sept-2019-FINAL_TOPRINT%20%281%29.pdf)
Total = Between 179,520,000 USD & 202,240,000 USD.
Acquisition of HGO. Page 8. = 35,000,000 USD
The HGO acquisition is accretive as the deal is positive, between
+ 144,520,000 USD & + 167,240,000 USD. Moreover, this excludes Baloo production and the extensive land package.