I was on the evening one, they know what they're talking about. Webinar explained the project overall and then details around the starter pits.. but wow i did not realize how big this gold field was until i saw the 3d interactive map.
They went over the ASX Announcement that was released detailing the optimized starter pits, we all know the details of that but here's a summary again:
Pay-back period reduced to 8 months
260 koz delivered to plant over Life of Mine
First year production of 49.5 koz
Life of Mine (LoM) 6.5 years
US$150.2 million EBITDA over LoM (that's worth $230M AUD, and goes up by $45M per $100 increase in realised gold sale price over $1,500, so if we took $1,700 let's say, that would mean $320M EBITDA - only on the starter pits)
Internal Rate of Return 123%
US$85 million Net Present Value
US$855/oz all-in sustaining cost (AISC) LoM
Total Capital Cost US$31.4 million includes 20% plant throughput increase
We are talking about a starter project here with 260,000 Oz, with a very cheap recovery and only 8 month payback, I'm pretty sure i heard yesterday that the CAPEX would be debt financed so that would mean no dilution for the $30m or so required for the build.
They said also that production is in 2021, no more specifics.
The conversion from underground to open pit is pending approval still, expected shortly.
There's more exploration programs going to take place so that will over the period increase our resource base.
Very positive briefing, these guys know what they're talking about, i believe the presentation that came out of the briefing will be released today.
Cheers,
TGM Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
