Post by
nozzpack on Nov 23, 2024 11:01am
Kinross Great Bear PEA
At $2500 POG, the After tax NPV5 is $3.35 Billion US which is about $4.5 billion in cad.
6.7 million ounces , only 40% was in the M&1 category with an average grade of just 2.5 grams per ton.
The proposed mine included an Underground Component .
Because of the low grade, a 10,000 tpd mill was required, with total mine development capex of $1.45 Billion US which is about $2.2 Billion in CAD.
IRR was just 35% at $2500 POG
Great Bear is a good example of the impact of grades on IRR .
Low grades require mills with high processing capacity which are very expensive.
For the same ounces of production, a 10 gram open pit mine would need only about 2000-2500 TPD
mill .
QWN have very high grades which means low capex and low cash costs.
Its PEA will make Great Bear look like a carpet bagger..