Ann: Definitive Feasibility Study Update, page-96

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Karlchen54

165 Posts.

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12/02/20

20:24

Post #: 42896783
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Originally posted by Natos: ↑

Never let a project's NPV fool you @nigelnz

In my opinion, the reason for the recent negative sentiment (and sell off) of many holders is due to them having thoroughly read and now understand the DFS.

There are many questionable factors which have been inputed into the DFS which you would probably miss if you only look at the highlights.

The DFS has proven to indicate that as a stand-alone mining operation I.e. without the downstream processing, the project is not economically robust enough to support the debt equity ratio of 50/50 proposed in the initial Castlelake deal. As Castlelake required certain criteria to be met, and the economics would suggest they have not been met, a serious question mark is raised over whether Castlelake will proceed with their funding package.

The additional complexity behind this is GPX owe $4M USD to Castlelake which they borrowed to complete the DFS. This falls due towards the end of the year, and if Castlelake or some other financier don't fund the project there is a serious threat that Castlelake will become the owners of Chilalo project.

Sorry to sound so negative, these are just some observations some fellow & now ex GPX holders have made.

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What "sell off" of MANY holder ? ?

SOME weak hands sold, cause they expected heaven and just got a good DFS ! Which they could ˋnd read properly. There are so many parameters which interact together. They can still modify them! and i mean NOT to YOUR liking, but to improve the value of the project. These are different points!

MVL Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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