Sorry the table was not copied correctly.Although the capex will...

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DISCIPULA

217 Posts.

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27/09/21

13:10

Post #: 56374554
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Originally posted by DISCIPULA: ↑

The 2017 PFSstates:

Maiden Ore Reserve Estimate at the McPhillamys Gold Project (MGP) is 60.1 million tonnes at 1.05g/t Au for 2,034,000 ounces of gold. A gold price of A$1,400 per ounce was used in Ore Reserve pit optimisation
(I wonder if a gold price, say A$1600 - A$1800 per ounce was used, what the reserve figure would look like? Hope we will see some nice surprises in the DFS.)

This increases Regis’ total gold Reserves to in excess of 4.2 million ounces.

Pre-feasibility level study shows the MGP is a robust, large scale open pit gold mine:
7 million tonne per annum mining and processing operation
Gold production averaging 192,000 ounces per annum over a nine year mine life
Capital cost of development estimated at A$215 million (including water pipeline)
Life of mine All In Sustaining Cost of operation estimated at A$990 per ounce
Post capex, pre-tax NPV5% of A$525 million at A$1,600/oz gold price

Understandably capex and AISC will now be substantially higher than the original PFS estimates. However POG has also increased, wouldn’t the NPV5% increase proportionally? Hypothetically for example:

PFS
Increase %
DFS ?
Capex (A$ mil)
215
40%
301
AISC (A$)
990
40%
1386
POG (A$)
1,600
40%
2240
NPV5% (A$ mil)
525
40%
735

Although the capex will be more likely in the 400 millions as per latest Diggers and Dealers Presentation. I think it would be palatable to the market if the reserve gets updated also.

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Sorry the table was not copied correctly.

Although the capex will be more likely in the 400 millions as per latest Diggers and Dealers Presentation. I think it would be palatable to the market if the reserve gets updated also.

RRL Price at posting: $1.97 Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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