Some back of the napkin math of what we can expect from this project:
Revenue
| Deposit | 681 kilotonnes (kt) of ore |
|---|
| 1 | Grade | 2.8 grams per tonne (g/t) |
|---|
| 2 | Contained Gold (estimated) | 61,000 ounces (oz) |
|---|
Revenue estimates based on a gold price of:
$4,000/OZ (conservative) =$244,000,000
$5,000/OZ= $306,000,000
Minus Expenses
1. AISC for shallow open-pit gold mining in Australia is estimated at: AUD $1,200 to AUD $1,500 per ounce. This includes:
- Direct Operating Costs (costs for running the mine on a day-to-day basis e.g. labor, fuel, processing, administration)
- Sustaining Capital Expenditures: Ongoing costs for maintaining and replacing equipment, mine development, and extending the life of the operation)
- Royalties: Payments made to governments or landowners, typically as a percentage of revenue.
- Other Costs (sometimes included): Environmental management, reclamation, and long-term mine closure costs.
2. Capital costs for setting up a shallow open-pit operation: AUD $50 million to AUD $200 million, depending on the size.
Net Profit
Revenue= $306,000,000
Minus capital costs= $150,000,000
Minus AISC=$91,500,000 (1,500 * 61,000)
Net profit= 64,500,000
(20min delay)