Comments on PFS results To fully appreciate the results of the feasibility study, it is important to understand the purpose of this document and what will follow. In this case, this objective was to confirm the economic profitability of this project in a format compatible with the requirements for financing. Consequently, what will follow is the conclusion of the financing.
Considering the estimated economic results for the Kiniero project in this PFS and the initial capital cost estimate of US$144 million; regardless of the predictability of the free cash flows generated by the operation of Nampala and the strength of Robex's balance sheet, I am certain that this project will be financed without any difficulty and on very advantageous terms.
For this study, Robex had to migrate "a sufficient quantity" of mineral resources into the reserve category, under the responsibility of the qualified and independent geologist. I emphasize the term "sufficient quantity" because economic viability has been demonstrated with reserves as low as 803,000 ounces, out of total mineral resources of 3,680,000 ounces of gold.
In conclusion, it should be understood that the objective of demonstrating excellent economic profitability of this project was achieved with the consideration of only 22% of the mineral resources calculated to date. All the results presented in this study are in fact the minimum that can be obtained, from the initial capacity of the plant to the life of the mine. Consequently, the minimum necessary for the financing file has been obtained and the economic potential of this project greatly exceeds what was presented.
The next few months will be very interesting. In the meantime, remember that the 2022-Q2 financial statements will be published this week.