Ann: Appendix 3B, page-16

First 16 Last

Share
Profile

Follow
Davisite

18,952 Posts.

5677

24/08/19

09:53

Post #: 40131463
Share

Originally posted by Cashmeoutside ↑

I couldn’t think of a better place to park EAR funds than here to be honest but I’m a touch biased (should EAR play out as I suspect I will be using funds to build an even bigger position).

EAR with infrastructure in place and in Oz was trading at A$90/resource oz and those ounces were not particularly cheap ounces - est around US$950/Oz and tax structure is 6.1% royalty, 30% Corp tax with some good tax losses. They’ll probably get taken out for A$120/resource oz is my guess.

CDV has no infra, is in Ghana, has costs around US$750/oz and tax structure is 5% royalty, 35% Corp tax (to be determined). Is trading at A$28/resource oz (using 7Moz resource). I think the fact the ounces are cheaper should offset the location so I can’t see why CDV can’t trade at the same A$90/resource oz or around $1.20/share.

More specifically to your query the only other major risk I foresee (other than Africa) is the metallurgy, the DFS has been delayed to do further met work on a relatively new process (Aachen). The gold is finely disseminated in the ore so may require finer grind size, more consumables etc to extract the gold. I’m fairly comfortable this can be overcome.

Expand

Agree with all of this except the Aachen process has been around for quite a while and is well proven at scale. The unknown is how well it will work on the different Namdini ore types, but that is what we are about to find out in the upcoming DFS.

Last edited by Davisite: 24/08/19

CDV Price at posting: 45.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply