The Basis For Scoping Updated FS NPV From the current CP ....
" 128M NPV @ US$1850/oz, $273M NPV @ US$2700/oz spot gold price (113% IRR)
50k oz annual gold production, $75M initial capex prior to Pine Cove mill acquisition (lower capex) "
Lets See How that would rise with current knowledge ..
Capex definitely reduced by $ 40 million due to no need to upgrade Nuggett Pond Mill and No high tech ore separator
Bootstrapping the cost of reopening HD by early mining plus fund flows from stockpiles etc....$20 million savings
Higher recovery of Pine Cove Mill ...at least $15 million increase in net gold recovery.
In Summary, high probability that capex for HD will be reduced to near zero...let's say to $15 million .
This will remove $60 milllion in capex which is amortized over the 5 year mine life in 2022 FS.
Adjusted 2022 FS NPV at spot Gold becomes $263 million plus $60 million
which is $323 million .
Now, with Orion, Stoger and the three HD satellite discoveries adding another 5 years of mine life, the NPV will more than double ..fixed overhead/ costs are spread over 10 years instead of 5 ...but let's just double.
And we have a NPV of about $650 million
Typically, gold stocks trade at about 0.75 of NPV whuch is about $475 million.
Compare to Firefly at current $700 million cad market cap and we are in the right relative market cap.
These are fairly hard numbers and compatible with asset potentials of Firefky and MAE so no reason to deny their reality.
Which means we have a major catch up leap ahead of us when the material News flow begins..
GLTA