For comparison, below are some numbers from CMM’s 1.5Moz Karlawinda gold project. NPV calculated with an 8% discount rate. CMM have a market cap of $51.6 million at 6.9cents. I think CMM will be good once the gold price comes back and it looks like they are not giving up on developing this project with first ore in March 2019 on their current mine plan. Debt funding is due this month. We shall see if they are all talk on their timelines though. If they can get funding bedded down they are much better value than EAR (even at 16cents) IMO. Esh
The pre-tax Project NPV(8) has increased by 69% to $243m at an improved IRR of 36%, with Project pay back reduced to 2.5 years.
• Total upfront capital costs have been reduced by approximately 10% to $132.0m and significant improvements to the process flowsheet have been identified, resulting in higher throughput of oxide and laterite ores and lower operating costs.
• The mine life has been increased by 2 years to 8.5 years, with a 25% increase in LOM gold production to 823koz recovered at a LOM AISC of $1038oz. The LOM strip ratio is relatively unchanged at 4.8:1.
