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Ann: Taylor Collison Initiates Coverage on Eganstreet, page-21

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eshmun

11,185 Posts.

2609

10/03/18

02:44

Post #: 31657084
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Originally posted by Davisite ↑

Lots of very interesting information in here, but I thought I would focus on the bull case.

Scenario Analysis – Expanded Project
In the context of the Company confirming the broader prospectivity of the Project and to gain a better understanding of its potential value, we have evaluated a bull case scenario that envisages an expanded plant (1.5x that of our base case) and gold production of 100koz p.a. over 10 years. This implies a mineable resource of ca. 1Moz which is within the limits of our estimated exploration target. Table 8 summarise our bull case scenario for the Rothsay Gold Mine. It can be seen that substantial value is unlocked in the Project under an expanded production scenario. Our un-risked, DCF valuation generates a post-tax NPV8 of A$187.3m or A$1.21/share (assuming 155.3m ordinary shares). The plant expansion contemplated in our bull case scenario is fully funded by cashflow generated by the base case scenario and generates EBITDA of A$76.7m and FCF of A$39.8m at full production (TCLe).

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There is a word that can be put in between the words bull and case in "bull case scenario" that more aptly describes this scenario.Esh

EGA Price at posting: 26.0¢ Sentiment: None Disclosure: Not Held
2 Upvote

1 Great analysis

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