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Bullboard - Stock Discussion Forum Voltalia Ord Shs VLTAF

Voltalia SA is a France-based holding company engaged in the renewable utilities sector. It designs, develops and operates electric power stations in numerous countries, such as France, French Guyana, Brazil, Greece and Morocco. The Company generates electricity using a variety of renewable energy sources. These include wind, water, biomass and solar power. In addition, Voltalia SA specializes... see more

PINL:VLTAF - Post Discussion

Voltalia Ord Shs > This is IRR for SSP ....similiar grades...???
View:
Post by 4x4 on Apr 17, 2012 1:08pm

This is IRR for SSP ....similiar grades...???

Highlights include:

--  Mining of 1.0 million ounces gold at an average grade of 1.2 g/t and 101
    million pounds copper at an average grade of 0.18% from the fresh rock
    mining operation over the first five years of operation.
--  $750 million cumulative cash flow during first five years of production
    at December 31, 2011 three-year trailing average gold price of
    $1,255/oz.
--  Pre-production capital costs of $482 million through development of more
    capital efficient operation for the first five years of mine life.
--  Average cash costs including royalties of $450/oz. gold (net of copper
    credits) in first five years of operation and $600/oz. gold (net of
    copper credits) over the 14-year mine life.
--  Mining of 4.0 million ounces gold from fresh and saprolite
    mineralization at an average grade of 1.0 g/t Au over a 14-year mine
    life at 4.1: 1 strip ratio, and 5.0 million ounces gold over 22-year
    life of project.
--  Definitive Mineral Agreement signed with government of Guyana on
    November 9, 2011, the terms of which have been incorporated into the
    Updated PEA.
--  Environmental authorization reviewed by Guyana Environmental Protection Agency with no fatal flaws found; and final approval is pending.
--  Open pit operations anticipated to commence in 2015.
 

Financial Results for the Higher Grade Startup Case at a Range of Gold
                                    Prices
----------------------------------------------------------------------------
                                                Life of Project
Select Financial Projections(1)         (14 year LOM + 8 year stockpile)
                                   -----------------------------------------
                                      Base         Gold Price Sensitivities
----------------------------------------------------------------------------
Gold Price ($/oz)(2)                $1,255  $1,400  $1,550  $1,700  $ 2,000
----------------------------------------------------------------------------
Undiscounted Pre-Tax Free Cash Flow
(Millions USD)                      $1,743  $2,322  $2,921  $3,520  $ 4,718
----------------------------------------------------------------------------
Gold Royalty Cost ($/oz)(3)         $  100  $  112  $  124  $  136  $   160
----------------------------------------------------------------------------
NPV @ 5% (Pre-Tax)(Millions USD)    $  805  $1,125  $1,455  $1,786  $ 2,447
----------------------------------------------------------------------------
IRR (Pre-Tax)                         21.3%   26.3%   31.1%   35.6%    44.1%
----------------------------------------------------------------------------
NPV @ 5% (After Tax)(Millions USD)  $  540  $  859  $1,190  $1,520  $ 2,181
----------------------------------------------------------------------------
IRR (After-Tax)                       17.9%   23.6%   28.9%   33.8%    42.7%
----------------------------------------------------------------------------
Up-Front Capital(4)(Millions USD)   $  482  $  482  $  482  $  482  $   482
----------------------------------------------------------------------------
(1) Base case and gold price sensitivities make use of Inferred resources.
    The Updated PEA is preliminary in nature and includes Inferred mineral
    resources that are considered too speculative geologically to have the
    economic considerations applied to them that would enable them to be
    categorized as mineral reserves.
(2) Copper price set at 3-year trailing average effective January 31, 2011
    of $3.25 per pound for all sensitivity cases.
(3) Gold royalty set at 8% of gold receipts as per Mineral Agreement between
    Government of Guyana and Sandspring Resources Ltd. dated November 9, 2011.
(4) Up-front capital includes all pre-production development capital and 15%
    capital contingency prior to commencement of commercial production.

Comment by VentureTrader1 on Apr 17, 2012 5:13pm
Doesn't appear to be anything wrong with that - and they're getting 0 credit.  But that's the market right now.  People pretend the analysis is objective, but it really isn't.  Assumptions on future gold price for instance, but also what acceptable rates of return are, what political risk is, etc.  I've noticed that a lot of the opinion that comes out ...more  
Comment by Curvature on Apr 17, 2012 7:39pm
This post has been removed in accordance with Community Policy
Comment by VentureTrader1 on Apr 17, 2012 8:40pm
Which raises the question - why use $1200.  But this is back to my point about analysts supporting the prevailing price trend.
Comment by Curvature on Apr 17, 2012 9:03pm
This post has been removed in accordance with Community Policy
Comment by ALLEN4 on Apr 17, 2012 9:28pm
I think there is a percentage of traders in and out of VTR who see it as a vehicle to leverage the rising price of gold.  When the continuing rise in the POG is called into question those traders bail from VTR and similarly situation stocks.  But this is only a portion of VTR shareholders.  If you invested based on company's fundamentals and its drilling success there is no ...more  
Comment by 4x4 on Apr 17, 2012 9:34pm
Yep, the high grade in Kiaka south should go a long way to get the irr much higher and recoup the capital start up costs and operational cost much more attractive.... I was told that there are 4 drills turning on Kiaka South so they are determined to get a compliant resource defined at this location..... Let's hope the drills are hitting long intercepts of high grade....I will make the ...more  
Comment by Curvature on Apr 17, 2012 10:04pm
This post has been removed in accordance with Community Policy
Comment by 4x4 on Apr 17, 2012 10:24pm
I agree we don't know, one poster asked what the IRR might be.  I posted an example of another company I follow with somewhat similar grades for a reference point and nothing more i am very much looking forward to see the PEA... Just another step this company will have taken and derisking this property
Comment by gold_diggers1 on Apr 17, 2012 10:38pm
You guys keep referring to PEA (Pre Economic Assessment), not PFS (Pre Feasibility Studies), why??   Are PEA and PFS the same?    I thought they are different, are they not? GLTA  
Comment by Curvature on Apr 17, 2012 11:30pm
This post has been removed in accordance with Community Policy
Comment by gold_diggers1 on Apr 18, 2012 12:01am
Yes, I agree with Curvature.  And I should correct the term PEA as Preliminary Economic Assessment (not Pre Economic Assessment as said in my previous post).   PFS is Pre-Feasibility Studies which is more involved/robust than a PEA.   Then the FS (Feasibility Studies) will follow the PFS... FS is the one that is even more detailed in design, engineering etc... and is ...more  
Comment by gold_diggers1 on Apr 18, 2012 9:46am
" The big puzzle is why there are not sufficient buyers to eat up these cheap shares and keep the sp from descending further.   I think there is a great deal of money on the sidelines waiting to re-enter the sector when the time is right." ALLEN4, yes, I think people with money are still on the sideline... since who would come in to buy and then see your porfolio shrinks?& ...more  
Comment by gold_diggers1 on Apr 18, 2012 9:52am
and in this fear market, people will be putting in lower and lower stink bids as sp slides further... as long as there are still people selling into the bids?! GLTA  
Comment by eebler on Apr 18, 2012 10:41am
There is also the potential that many investment houses are no longer able to buy VTR since it dropped below a certain price-point.  It isn't a hard-and-fast rule, but if there are interested institutional buyers that have rules related to minimum price then they can't touch VTR right now regardless of how cheap it might be.    I think it is Goldman Sachs that is ...more  
Comment by gold_diggers1 on Apr 18, 2012 10:57am
"in this fear market, people will be putting in lower and lower stink bids as sp slides further... as long as there are still people selling into the bids?!" See what I mean?  People sold into $.87, then $.86... and no more bids at $.86... The only consolation is that the volume is really low... but the bad thing is it only takes a few people with fears to drive the sp further down ...more  
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