The Hockey Stick Investor Discovery Curve Imagine , $41.7 CAD million per year in free cash flow on just 50,000 ounces per year at $1750 US POG for 5 years generating 247,000 ounces of productin
Directly from the 2022 FS of the HD mine.
Thats over $200 million in unencumbered cash.
The updated FS ,currently underway, will include along with 60,000 ounces from HD for 5 years, another 250,000 ounces from Orion , Stoger + for a total productin of about 550,000 ounces at $2500 US.
Just simple math computes to about $500 million CAD in free cash flows at $1750 US POG.
My analysis relating to cash costs, including a 10% gain in gold recovery, shows modest if any net increase in AISC per ounce.
However, even $100 US increase per ounce in operating costs pale in comparison to over $700 US gain in the Price of gold received at $2500 US POG.
You'd be talking about nearly $1 billion in free cash flows over 10 years
Imagine what all of this unencumbered cash will enable in acquiring millions of ounces in additional gold resources currently stranded in NL but transportable to Point Rousse for production at levels of 100,000 ounces or more per year..
My proxy model JAG with an AISC above $1400 US per ounce has a market cap of $450 million trading at 10 times its annual free cash flows.
Discovery is coming.
That hockey stick price trajectory will be ours too.
Coming to a theatre near you..
GLTA