RE:RE:RE:RE:RE:wkp press releaseI hear you about mining business being risky Elvis436.
Also I would add a lot of cost inflation in it. Show me a single forecast or cost from a few years ago that has not inflated greatly as far as costs go. One only has to look at this companies forecasts from a couple years ago. That being said they are far from being alone and their share price has actually done quite well this year (comparatively) even with production shortfalls, cost overruns, and now this news ( delayed startup)
That all being said the economics of Wharekirauponga are compelling.
A 634 AISC and mine construction cost of 463$ per ounce.
Not bad in a 2500$ per ounce environment.
Of course you need to trust the figures, but you need to do that with every source or why invest. .
I have total confidence that OGC has the internal cash flow to fund this. Even when Macreas shuts down in a few years. (probably), it should be a piece of cake as long as gold is around 2500 or maybe 2250.. If gold goes down significantly then most of the gold companies will be in trouble as unlike this one, some of them are having trouble making good money, even now ( times are good)
Just IMO - just a numbers guy and do not pretend to know the mining business in detail, like many of the posters here.
Buy or sell in these industries is always a bit of a c--p shoot.
Waihi District PFS Highlights
- Initial Mineral Reserve for Wharekirauponga Underground of 4.1 Mt at 9.2 g/t for 1.2 Moz of gold
- After-tax NPV5% of $621 million at a gold price of $2,400 per ounce, or $138 million at $1,750 per ounce
- IRR of 24% at a gold price of $2,400 per ounce, or 9.2% at $1,750 per ounce
- Gold production of 1.6 Moz over a 15-year mine life at an average All-in Sustaining Cost of $994 per ounce (or $634 per ounce over the Wharekirauponga-only mine life)
- Significant project upside at Wharekirauponga with ~400 koz of Inferred Resources and recent results confirming the EG Vein Zone mineralization extends a further 270 metres to the south and remains open in all directions
- Growth capital of $556 million over an 8-year period, expected to be funded from Free Cash Flow
- First ore from Wharekirauponga Underground expected in 2032
- Early-works 2025 capital budget of $40 to $45 million approved for design and construction activities, subject to receipt of necessary permits.