The $1600 gold price assumption was for the Garden Well South Underground FS released just last month.
That's why I want to know why they used that. Could be wrong, but I think it is because the hedging needs to be taken into account for determining reserves under JORC. But they are dribbling only 20,000 oz a quarter into these spot-deferred hedges, at which rate they will take a decade to clear.
I got an NPV of $135 million using $400M capex, $1200 AISC, two year build, 5% discount rate and $1600 gold price. At $2000 gold price, I got NPV of $605M.
RRL Price at posting:
$3.64 Sentiment: Hold Disclosure: Held
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