Realistically noone really can predict the forward gold price for the next 3-5 years, which means developers have to use a bit more conservative POG than the current spot price.
Northern Star's Superpit expansion study, Ramelius' Edna May Stage 3 OP study, Westgold's Great Fingall all use $2,600 as their base POG to calculate NPV/IRR figures, so De Grey's $2,700 POG is more on the optimistic end of the POG range.
Money of mine podcast gives a nice run-down on De Grey's DFS and provides a detailed view on the POG assumptions used by Aussie Tier 1/2 gold producers. Would recommend to watch.
How to Interpret De Grey's and Latin's big announcements: https://youtu.be/CN2kHN83_r0
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)