Ann: WAF to Acquire 6.8Moz Kiaka Gold Project and Equity Raising, page-22

Hey Nord, this comes from B2Golds March analysis/discussion release.


As you mention, very likely that WAF is very aware of the potential to improve the economics.

@loki01 - WAF start with just under 7m ounces. Even if they strip away a lot of fat, I feel converting 40% of what is currently there, is very achievable. i.e. approx 2.7m ounces in reserves. That will give WAF a 10+ year mine life with potentially, 250k+ p.a.
Tack on an underground deposit, and suddenly they have a Tier 1 project.

As to why B2Gold have now sold 2 assets to WAF....
I can only guess, but.... just not big enough production wise? Too capex heavy? They have bigger projects to progress?

B2Gold don't give much away....


This from 2013 in B2Golds releases.



Very interesting, as that bumps the grade up well above my 1.1g/t estimate. 1.5g/t is seriously good grade for a very large open pit project. Even just 6mtpa, would see WAF produce above 265k p.a. 8mtpa...well... that is over 350k p.a.
Now I read that, either I am being waaay to optimistic, B2Gold was too optimistic, or mix, or Richard and WAF are just... very very astute.

but.. to try and be balanced, B2 later in the same document, mention this... so... probably safer to pick a number between 200-300...



Regarding the MRE $1800 USD cutoff, that is pretty standard as I understand it.
Though some Australian companies are using as high as $2800 AUD....

Finally.. I must agree that the dilution was a slight surprise, though... I think it shows just how keen WAF are to get on with building Kiaka gold project. 30 months from first pour, is ambitious, but... if anyone can do it, WAF can. All will be funded likely from cash flow, particularly with the coming few quarters of low AISC, plus... the $145m they now start off with.