RE:Undervalued Dundee is not just one of my favorite mining companies, but one of the most profitable companies in any sector. Coka Rakita could pay for itself in about 1 year at today's prices. Amazing.
The table below shows the gold price sensitivity for the project:
| Gold price sensitivities |
| | | | Base case | | |
Average gold price
($/oz.) | $1,500 | $1,700 | $1,900 | $2,300 | $2,500 |
NPV1,2
(after-tax, 5% discount) | $410 | $573 | $735 | $1,059 | $1,222 |
IRR1,2
(after-tax) | 28.3% | 35.1 | 41.4% | 52.5% | 58% |
Payback
(years) | 2.3 | 1.9 | 1.7 | 1.4 | 1.2 |