Final Initial Capex Number Will Be....? Recent noteworthy news from ARTG:
Initial Capex Estimate for Phase One from the September 10, 2021 Feasibility Study: C$645M
"Artemis Gold announces that as a result of internal engineering analysis, it has committed to additional investments as part of its Phase 1 development of the Blackwater Mine in order to facilitate the potential fast-tracking of the Phase 2 expansion. In support of these additional investments, the Company has amended the gold stream agreement with Wheaton Precious Metals Corp. (“Wheaton”) which will provide an additional US$40 million (C$54 million) in funding at a very low cost of capital....
The cost of these additions, together with over-budget expenditures on permitting costs and additional bonding costs connected to those permits, will require additional funding of approximately C$50 million....
The initial capital to complete to first gold pour is now estimated to range between C$730 million and C$750 million...
While the Company believes it has captured all known inflationary impacts plus contingencies to completion to gold pour in this estimate, it will provide updates on any material changes to this estimate on a quarterly basis through to commissioning and first gold pour in H2 2024...."
My observations from the above:
Initial Capex estimate from the September 2021 Feasibility Study plus the additional expenditures for the upgrades (C$645M + C$50M):
C$695M
Revised Initial Capex Estimate from the press release:
C$730M to C$750M
1) Looks like ARTG is already projecting their initial capex to be $35M to $55M over budget vs. the September 2021 Feasibility Study plus the upgrades money.
2) Any further upward revisions to this number will apparently be communicated on a quarterly basis.
As I've stated in past posts, the September 2021 Feasibility Study is outdated in my view, so I wouldn't trust the cost estimates included in that study and thus the projected profitability / return numbers presented.