Ann: Kal East to Generate Strong Returns - Study Update, page-30

Its a company maker alright...$200m-$250m in free cash flow over the first 4 years and its open. (Based on today's gold prices)They have allowed for today's cost base and re-run the numbers. Gold price is outpacing costs by a large margin.
A few things to consider- The studies, the price of gold, and the embedded infrastructure, grade. The high-grade veins are not even in the study. They have found the offset, the area is wide open, and they already have 4 years at 50-70k pa, Mt Clement, Belvedere and the Paulsens repeat are mineralised and need drilling. This is a very low capex restart and BC8 doesn't carry the overheads of NST. I have seen dozens of assets sold out of larger miners over the years. A smaller lean machine with this expertise will milk this asset like NST could only dream of. NST remain a shareholder. If they thought it was a dog, they would have demanded cash only and not stuck around. They know exactly who the management are and what they can do. They are about to get a chunk of debt as well. You dont hand out debt to company killer assets. The top 10 are decent names with several household names. Templeton and NST for example.
The gold stock market is mispriced imo. Its the cheapest segment out there. Dyor