Late 2013 Seafields Report, Page 15, if there is a 20% reduction in costs:
NPV@5% US$167m
Operating Costs $65m
Capital Costs $78m
Looking for payback of 3 years approx. as they want to improve IRR to 25%
So even at $1300/oz gold price we should be at $51m NPV without the above improvements, I am confident MNC can redress the current model substantially.
If that is the case, my guesstimate is a Net Present Value (5%) of $125m @1200/oz....... hence massive undervaluation on this asset alone.
Add Los Calatos with ANY upside....
Crazy Market Capitalisation at the moment.
MNC Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
