Pretty moderate scoping study result IMO.Might struggle to get...

Pretty moderate scoping study result IMO.

Might struggle to get project finance, bankers will not like the downside sensitivity. Wack a 10% lower gold price, 10% opcost and capex increase and this project will likely have a negative NPV.

Bankers are likely to ask for a base case gold price of US$800 Maybe US$850 at highest. At these levels the project is pretty slim.

There is a credit crunch in mine financing just as much as anywhere and I doubt that this project would stack too well in the quality stakes.

When the KAL management refer to toll treating as a 'less risky' option, it shows you they are thinking the same thing.

A discount rate of 10% is also pretty right nowadays though 11% and higher is starting to be used. 8% discount rates are a thing of the past.


ACTURTLE