RE:Excellent Proxy for Adumbi PEAIn today's NR, they provided many of the essential financial metrics associated with the coming PEA.
Total cash costs were not provided .
Howver, as the open pit grades are very close to those of Kimbali, so should the total cash costs.
In the most recent Quarter ( Q4 of 2020 ), Kimbali total cash costs were $616 per ounce.
For computational convenience, I will use $700 US per ounce at POG of $1700 US per ounce.
That is, free cash flows to the balance sheet bottom line of $1000 US per ounce .
Adumbi will easily be capable of 200,000 ounces per year for 15 years.
So, that means free cash flows per year of $1000 US per ounce X 200,000 ounces which is $200 million in free cash flows going directly to the bottom line of the balance.
As posted previously, small cap gold producers trade at 8.6 times annual cash flows.
That results in a fair value market cap of $1.7 billion US on just the Adumbi open pit mine.
This, of course, won't be allowed to be the case.
With multiple suitors , Loncor won't be valued any less than $ 1 billion when its massive gold resources are pre emptied by early bids .
As always, the early bird will get the worm..