Rough Scoping of QWN 5% Discounted NPV after tax I use V Lake 2022 FS as my projection basis.
Its After tax NPV5 at $2500 POG is $1.7 Billion cad.
That is based on Reserves of 2.7 m ounces grading 1,6 grams per ton .
My calculations , including the top 7 QWN prospects at drilled pit depths equivalent to those of V Lake ( 260 m ) , estimate just over 15 million ounces of Reserves for those 7 prospects , with an average grade of 11 grams per ton .
That is, those 7 prospects contain 6 times more revenue producing ounces as V Lake ( 15 m/ 2.7 m )
from whence the QWN after tax NPV 5 becomes about $10 billion cad.
But, there is more to that difference .
Because of low grades, V Lake needs a 10,000 tpd mill which costs over $800 million.
At 11 grams per ton , QWN can get by with 1500 tpd for equivalent production of 200,000 ounces per year.
Further high grades means lower cash costs .
Roughly speaking , QWN 7 best Prospects should produce a after tax NPV 5 of about $11 billion at $2500 POG and reseves of 15 m ounces
Typically, producers now trade at about 0.75 times the NPV....
If you wish to be more conservative, Napkin Math estimates close to 7 million ounces of Reserves....about $5 billion after tax NPV5.
These are extraordinary numbers for just a portion of QWN and largely excludes depths below 300 meters ..