Blackham is on track to become the only new significant gold producer (+100koz) in Australia during 2016. The DFS confirmed the Project’s robust economics and minimal initial capital requirement for a Project of this magnitude.
We were particularly pleased by the increase in the mine life to more than 7 years (previously 5 yrs) given there was less than 6 months between the PFS and DFS.
We see further upside in the mine life (TSI assumption - 9yrs or 945koz) from both open pit and underground sources, as well as the potential to improve the underground mine grade further (4.9 g/t DFS vs. 5.6g/t TSI vs. 9g/t historical production).
We have increased our valuation from $0.46 / share to $0.87 / share. The primary drivers of our revised valuation was increasing our mine life assumption (945koz au vs. 600koz previous) and gold price (A$1,655 vs. A$1,597). Operating costs, capital costs and metallurgical recoveries were in-line with our previous estimation.
- Forums
- ASX - By Stock
- WMC
- Video: DFS Financial Analysis
Video: DFS Financial Analysis
-
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WMC (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online