I am a firm believer in a continuing appreciation in the price of gold.
Yesterdays/this mornings work was all about reconciling my DCF/associated analysis with the companies DFS that used a gold price of $1,250.
Once I had confidence in the model I would then play around with the various inputs (Cap-ex, op-ex, gold price, recovery rate, etc) to reflect an outcome that I believe is more realistic.
As my posts have highlighed I only really got to stage 1 as the analysis of the companies DFS threw up a number of questions that required further attention, namely the stated average rate of production and the lack of financing/taxation charges in CRC's model.
As per my other thread I have sorted the issue of avg rate of production and believe (based on the original DFS) that this should have been stated as 42k oz. The next issue financing/taxation requires a little more analysis, but will obviously impact on NPV.
CRC Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
