12.5 Cents Good Buy In Point, page-41

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PubLunchMan

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21/03/24

11:20

Post #: 72991430
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Originally posted by Wack: ↑

Hi all.
@WiffaSniffa
Most of us understand the economics and hence why we are here.
I did screenshot these following so that anyone struggling to understand the economics may find answers.

In this first pic, we can see what the scoping study results were.
Here I have circled them.
$2,600 is the study assumption.
The other amount that I have circled is slightly below the current AUD Gold Price.

What we need to consider is what that relates to for the project.
The top number is what is expected in resulting cash generation and the current GP effect on the cash generation.
As we can see, it is almost double when the Aud price is at $3200.
It is $3250 so probably makes it closer to double.

Let us consider the GP at $3400 AUD which is equivalent to ~$2200 USD
We have then added another $22m to the cash generation.

The begs the Q, will the GP stop at US $2200 or will it continue to grind up and add more $ ?
I know what my answer to that Q is.

We also could factor these grade control intersections and what they may mean to further economic benefits.

This will make a difference if the higher grades are more plentiful and the waste material in between does not outweigh those higher grades.

I am not sure how many are looking at just where this project is and how close other Li explorers are finding juicy results just over our fence.
@john435 Has maps of this area and may share them out of his purely generous nature but I will not speak for him.

Below is another example of sensitivity of The GP on the Munda project.
I might add that Munda is already showing signs that are suggestive to me that there may be a lot more to discover in that project which will be a game changer if that was to eventuate.

Cash outflows are under control and there are more considerations in the Canary assessment that you may want to read.

Now as @WiffaSniffa has pointed out, the options are in the money so all will be exercised given the profit to be generated by that and the outlook.

All we are left to consider now is, Where is the GP heading? and will there be more gold discovered at Munda or any of our other projects? One could also consider the Li prospects given KM1 to the nth and what they are Seeing.

All above excerpts are from the Canary Report.
Kind regards, Wack.

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At todays gold price, the Munda Project alone over LOM worth $155M to AWJ or over $1/share fully diluted...

DYOR

AWJ Price at posting: 17.0¢ Sentiment: Hold Disclosure: Held
9 Upvote

3 Great analysis

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