Regardless of whether Dargues is the best dirt or not. Expectation is 45-55,000 ounces per annum at a AISC of $1,150 - 1,350. At today's Gold value of about $2,278, that's $41M to $62M per annum for five years LOM = $205 - 310M profit (cashflow). At worst we break even, at best we make a 50% ROI. Full production is expected mid this year. When inflation does kick off in the US, contrary to Powell's attempts to convince people that printing cash and delays in winding up production to meet increased demand aren't going to drive it up, it's going to provide tail winds for Gold. Even if Gold got halfway back to it's peak (many think we'll make new records this year), then even without new finds from exploration, the ROI on this acquisition is more likely to be around $180M ($330M if Gold peaks as predicted) That's 40% roughly of current Market Cap.
AMI Price at posting:
37.0¢ Sentiment: None Disclosure: Held
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)