TSXV:EPZ - Post Discussion
Post by
DetVicMackey on Sep 15, 2011 2:11am
ESPERANZA UPDATES CERRO JUMIL’S PRELIMINARY ECONOM
Very good results from the updated PEA for Cerro Jumil. Annual gold production target is 106koz, which more than doubles the old PEA, and cash costs only went up about 25% to $499/oz. Pre-production capex is up 57% to $113.6M, but that is very respectable considering that more plant and equipment will be required to double production. With $1700 gold, the after-tax IRR is great at 53% (pre-tax IRR is 76% assuming a 30% tax rate). Mine life is only 6 years, however there is more drilling to be done in the area to prove up more resources/reserves.
$81.7M market cap - $23M cash - $13.2M in Globex = $45.5M implied value for Cerro Jumil
https://www.epzresources.com/Pdf/Press%20Release.pdf
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