Ann: Adriatic Metals Corporate Presentation, page-125

I would also note that the CapEx for Hod Maden is US$272M. This for a very easy to mine vertical deposit (longhole stoping). OpEx might be a bit higher here as this deposit dips 50 degrees, though they may be able to open pit. Why would they want to *increase* CapEx here for the benefit of recovering another 30-40% for a deposit that averages just 2 g/T Au? They could pay less than *half* the CapEx here (I estimate btwn US$80-$125M) by going with a simplified bulk flotation flow sheet and *still* produce highly profitable Zn, Pb and Cu con. Front loading CapEx and destroying NPV is a terrible idea. Cash flows later in mine life are heavily discounted so why not use late mine cash flows to pay CapEx for a gold recovery circuit? It only requires a simple understanding of DCF to grasp this.