March 2022, 43-101, Don Mario OSP technical reportThe recent report only looked at the Don Mario OSP stockpiles in the sensitivity analysis, while it viewed the tailings project as economic.
The base case applied a copper price of $3.00. The fully taxed NPV at 0% discount rate was $17 million, using a 12% discount rate this dropped to $16 million.
However, the current copper price is $4.70. If we used a copper price of $4.50 the NPV at 0% discount rate is $74 million, while at a discount rate of 12% the NPV is $50 million.
On a per share base at $4.50 copper price & 0% discount rate, the after tax value per share is $0.54, which is greater that the current stock price.
This OSP project should generate enough capital to get the Agrentinian gold project up and running. Meanwhile, the tailings project, which will require a very modest capital investment, will continue to generate cash for several additional years.