Tradeahead on NR Having re-read the NR in greater detail, I very much like where this is going. First of all we got in an earlier release the information that what was mined and milled from the fresh mineralization test package, and its actual yield of 1.83 g/t. I like to use that number instead of the higher number in the resource, because it deals with a lot of practical issues all at once. No need to discuss dilution, metallurgy, recovery grades, etc., it is all baked into this number, and "battle tested". I very much like that. Its a solid.
So 1.83 g/t at 1800000t = 3,294,000 grams = 105,904 ounces per annum.
105,904 ounces in AUD at 2,501.51 AUD = 264,919,514 or 265 MILLION in revenue. And would make NVO a growing, shining star as a producer. In CAD that is 241,5 million. We have a proforma cost level for running the NLP operation at about 10,5M per month (approx).
So you have 241,5M in revenue from gold sold.
less 126M in costs from running the operation.
That would be a free cash flow of CAD 155.5M (NLP free cash flow alone- not NVO as a whole, which clearly also benefits from NFG growth and exploration growth/ asset creation at its 30 targets).
That obviously also excludes the higher gold price we will see later in 2022.