What Options for Dargues now?, page-2

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14/05/15

17:42

Post #: 15281669
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Originally posted by curiouswon ↑

Does UML now have a range of development options for Dargues, particularly with new major shareholder and UML willingness to consider partnership options (i.e. as per Henty)?
(assuming imminent NSW Govt ok re on-site cyanide processing).
Development Options:
1. Fund with cash and debt and develop (as planned to date)
2. per 1. but with an equity raise from shareholders
3. per 2. but most new equity raise from new major shareholder
4. Partnership model on Dargues, with capital from partner in return for equity in mine

The financials for Dargues look very compelling to me - very good grades and a cash margin >50% at current gold price. Cash profit >$35Mpa.

Info below is from Feb 2014 from Unity.

Proposed underground mine to produce approximately 50,000oz gold pa. over an initial 5 year mine life
 Estimated cost to complete of $70M*, excl. targeted savings from “Project 30” initiatives of $8.9M
 Estimated cash operating cost of $700/oz**
 Completion of engineering and optimisation studies currently underway
 Resources: 1.6Mt at 6.3g/t for 327 koz gold
 Reserves 1.4Mt at 5.2g/t for 233 koz gold
 Deposit remains open at depth

Expand

UML should have enough cash to fund half, so like to see the other 50% farmed out/ JVed.

Even $10m pa on this market cap would be a PER of less than 2.

Still 2 years - 2 1/2 years of cashflow from Henty now.

UML Price at posting: 1.7¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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What Options for Dargues now?, page-2

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