Ann: Results of Shambesai Bankable Feasibility St, page-2

re: Ann: Results of Shambesai Bankable Feasib... wohhoo finally out as expected. Right before AGM today.

Good and bad with most in line with my predictions.


Cash costs have dropped from 411$ to 387$. Company has now released full cash costs including tax and all expenses to be around 676$/oz C3. Remember i reminded everyone here that the company will probably do a c1 and c3 costing model.

From now we shall use this figure as it is inclusive of all costs. This figure is after tax and nothing left to pay.

Capital increased from 37m to 47m. This is the only bad bit but after looking at the cost breakdown this is a bit misleading as if you look at page 9, the cost required to be spent in 2014 is the same 32m (as per the DFS). This is because the capital includes money which has already been spent in 2013. Most of which is on environmental studies and plant design.


Financials. Probably the best thing. Payback period is 11months so not much change even with the higher capex spend (gold price used is lower 1400$) so very impressive. Previously the IRR was pre-tax and using 1500$ gold. Now POST tax and using 1400$ gives us 67%. In my experience, companies who are confident in their numbers put out post tax figures while the weak ones only release C1 cash costs and pre-tax NPV/ IRRs.

NPV post tax of 105m$ current market cap roughly 20m with about 8-9m in cash. Now we can proceed to final stages of financing.