Ann: Positive Urucum Underground Pre-Feasibility Study, page-12

First 12 Last

Share
Profile

Follow
riskreward1

2,082 Posts.

1

31/03/16

10:36

Post #: 17389210
Share

Originally posted by JID ↑

Morning guys,

Quick thoughts include:

- Positive NPV (US$49m) on conservative USD POG assumptions of US$1,120.

- At current USD POG the NPV rises to c. US$74m

- Low pre-production capex of c. US$18m which will not be a significant drain on the balance sheet (unlike some were predicting). For example, the rest of Duckhead (20k oz) to be mined in Q3 would pay for this capex.

- This is only the first stage of going UG. This development will pay for all infrastructure to get underground (and make profit) allowing further exploration upside to be developed/ mined at much more profitable rates (there is lots more gold down there to find).

- Entire mine plan being redesigned to maximise profit. My interpretation is that we may process less ore each year but make more money. Yesterday's announcement was also important in that it highlighted how much oxide ore is being found and how deeply weathered the rock is.

- Interesting to see that 'potential exploration drives' go both north and south - i.e. back toward the TAP open pits where yesterday's announcement indicates that there is lots more gold as well as heading north into new ground.

- Analysts will now be able to incorporate the first stage of Urucum UG into their valuation models

All up a very encouraging start to extending the LOM and the first step. I wouldn't be surprised if some 'headline' readers are underwhelmed by this PFS. The upside, however, is to be found in the detail.

Cheers
John

Expand

Great thanks Jid. I take out from the report that they are being very conservative with the figures. Usd $12 on contingencies plus another $6m on capital that may or may not be spent. Plus all this based on low pog of 1120. This is just huge for Bdr. So much to consider now for mgt. we are in a great position and I trust mgt will deliver for all of us.

BDR Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
14 Upvote

0 Great analysis

Reply

Top Stories

I88

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

GRE

Greentech finds lithium trend across 5.5 km at WA's Kobe South

AW1

American West does it again at Storm with visually identified thick copper hits at Cyclone, Lightning Ridge

LGM

Legacy shares jump on discovery of multiple epithermal veins at Bauloora JV

PYC

PYC commences new study on drug for eye condition Retinitis Pigmentosa type 11