"The Project is anticipated to generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$88.0M (A$135.4M) and pre-tax cashflow of US$82.5M over the 3 years of toll milling using the Preliminary Feasibility Study (PFS) assumptions of US$2,500/oz of gold (Au) and US$27.50/oz of silver (Ag). At spot prices (US$3,300/oz Au, US$33/oz Ag) the project generates EBITDA of US$142.8M (A$219.7M) and pre-tax cashflow of US$137.3M. The Project is anticipated to generate pre-tax Net Present Value (NPV) of US$73.8M at a 5% discount rate and a payback period of 7 months from the commencement of first site works in month 1 (May 2025), or 2 months from the start of mining in month 6 (Oct 2025), Using spot prices (US$3,300/oz Au, US$33/oz Ag) this increases to a pre-tax NPV of US$123.3M and a payback period of 6.8 months. The Project is forecast to generate a post-tax NPV of US$50.5M at a 5% discount rate and produce post-tax cashflow of US$56.6M over the 3 years with a payback period of 2 months. Using spot prices (US$3,300/oz Au, US$33/oz Ag) this increases to post-tax NPV of US$82.2M at a 5% discount rate and produce post-tax cashflow of US$91.8M over the 3 years with a payback period of 2 months from the commencement of mining".
Hualilian Ore processing to begin occur November 2025.
Interesting that an NPV of 5% has been used for the PFS; thought an NPV of 8% may be more appropriate..
"Casposo process plant performance during commissioning and month 5 and 6, when lower grade Casposo material is being treated, will be monitored closely. Challenger has the flexibility to pivot, should Casposo process plant performance be good during commissioning, and deliver >10 gpt AuEq Hualilan ore for processing during the initial 90-day processing period. Should >10 gpt Au material be processed during the first 90-day processing period this would significantly increase production and cashflow during this period. Should the >10 gpt ore be trucked to the Casposo process plant for processing during the initial 90 days from forecast production increases to 17,318 payable oz AuEq and EBITDA increases to US$26.0M. Figure 10-2 shows the production forecast should the Casposo process plant perform to expectations allowing Challenger to pivot and transport >10 gpt ore to the Casposo process plant for processing in the initial 90 days of toll milling".
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