The December 2022 FS study is provided for comparison .
The 2024 FS will include also the Orion Gold Resources and Stoger Resources plus an additional 70,000 ounces from 2021-22 drilling plus 2024 expected.
Total Reserves boosted to 700,000 ounces from 272,000 ounces...see my previous post
POG is assumed to be the same as the 2022 FS which is $1750 US per ounce.
Significant changes are indicated in Yellow .
It is quite clear that expanded milling capacity available from Point Rousse or the Switcheroo with Firefly Nugget Pond ( assumed here ) enables ALL Gold resources to be exploited which boosts mining life to 8 years , average production from 50,000 ounces to 80,000 ounces, gold production to increase from about 250,000 ounces to 650,000 ounces , the discounted NAV to more than Double , the IRR to be exceptional , free cash flows explode and payback to 4-5 months ..
Fair value on 7.5 times Free annual cash flow would be greater than $400 million market cap , with no debt and sufficient cash to pay a robust dividend ..
Any comments would be quite welcome
GLTA
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2022 FS
Highlights:
- Open pit mine with run of mine (“ROM”) grade of 4.46 grams per tonne (“gpt”) Au, life of mine (“LOM”)
- On-site crushing and sorting plant producing 700 tonnes per day (“tpd”) of mill feed grading 6.76 gpt Au
- Mineral processing at Maritime’s 700 tpd gold circuit at the Nugget Pond mill facility
- LOM payable gold production of 247,000 oz, averaging 50,000 ounces annually
- $102.8M after tax net present value (“NPV”) (5% discount) with 48.1% internal rate of return (“IRR”), 1.7 year payback at US$1,750/oz base case gold price (three year trailing average)
- $75.0M estimated initial capital cost with $4.9M in net sustaining capital
- US$912/oz gold all-in sustaining cost (“AISC”)
- Several near-mine exploration opportunities to grow resources and extend mine life
Hammerdown Feasibility Study
Table 1. Study Results
| Item | Units | Total |
| Mine life | years | 5. ( 8 ) |
| Ore tonnes | kt | 1,895 ( x 2.5 ) |
| Waste tonnes | Mt | 38.5 ( 2.5 ) |
| Strip ratio | waste:ore | 20.3 |
| ROM ore production | tpd | 1,200 ( 1800 ) |
| ROM gold grade | Au gpt | 4.46 |
| Sorting plant waste rejection | % | 40.0 |
| Sorting plant gold recovery | % | 95.0 |
| Mill throughput | tpd | 700 (1100 ) |
| Mill head grade after sorting | Au gpt | 6.76 |
| Tonnes milled | Kt | 1,189 ( x2.5 ) |
| Mill gold recovery | % | 95.5 |
| Gold produced | oz | 247,346 ( 655,000 ) |
| Avg. annual production | oz | 50,000 ( 80,000 ) |
| Mining cost | $/t mined | 4.49 |
| Mineral processing | $/t milled | 48.06 |
| Trucking from sorting plant to mill | $/t milled | 25.50 |
| General & Administrative | $/t milled | 12.04 |
| Cash costs1,4 | US$/oz | 897 ( less ) |
| AISC per ounce gold1,4 | US$/oz | 912 ( less ) |
| Total initial capital3 | $M | 75.0 ( 25 ) |
| Total sustaining capital | $M | 4.9 |
| Avg. annual free cash flow | $M | 41.4 ( 66 ) |
| After-tax NPV(5%)4 | $M | 102.8 ( 250 + ) |
| After-tax IRR4 | % | 48.1 ( 65 + ) |
| Payback period2 | years | 1.7 ( 0.4 ) |
- Refer to "Non-IFRS Financial Measures" below.